Market Commentary November 2024

In November, various topics were in the spotlight: fund mergers, corporate governance in real estate companies, and active portfolio management. UBS announced the anticipated consolidation of its combined fund lineup with CS. This has already led to adjustments in the premiums of the future merged products. The fund management of MV Immoxtra has decided to request an extraordinary general meeting (EGM) at Novavest. As a long-term investor, the fund has been concerned for some time about the loss of confidence in the company, reflected in its weak stock performance and significant discount. Novavest's corporate governance does not meet the standards expected of a publicly listed company. The board seems unaware of these issues. To address this, the fund management is proposing two independent and experienced professionals, Cyrill Schneuwly and Ueli Kehl, for election to the board. Their expertise is expected to strengthen the board and facilitate the transition from the current external management model to an internal asset management structure. Good corporate governance requires an independent board, the avoidance of conflicts of interest, effective oversight of operational activities, and risk-conscious, active asset management. With a portfolio exceeding CHF 1 billion, the time has come for Novavest to establish a robust organizational structure. The fund management of MV Immoxtra urges all shareholders to actively support this change. Half-year results often bring little excitement for funds. However, Edmond de Rothschild has demonstrated a focused approach: through active management strategies and selective transactions, value is being created for investors. The proceeds from asset sales are funding new projects, and part of the profits is expected to be distributed in the next annual payout—a benefit for current investors. This example serves as a model for how active management can benefit all stakeholders

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