Article published in La Tribune de Genève, March 20th 2025
With persistently low interest rates, investors are facing declining bond yields and seeking alternatives that offer higher returns and portfolio diversification. In this landscape, listed real estate funds in Switzerland present an attractive solution. These funds provide stable income, liquidity, and inflation protection, making them a compelling option for investors looking to optimize their capital allocation. Dominicé & Co – Asset Management, an independent real estate investment firm, explains the advantages of investing in Swiss listed real estate and how it compares to traditional fixed-income investments.
Dominicé: Trusted Expertise in Real Estate Investment
Founded in 2003, Dominicé has built a strong reputation in real estate asset management in Switzerland. The firm follows a disciplined and transparent approach, focusing on long-term performance and risk management.
“Our objective is to offer investment solutions in which we have deep conviction and expertise—because we invest in them ourselves,” explains Diego Reyes, Senior Fund Manager at Dominicé. This ensures alignment of interests between the firm and its clients.
Thanks to its commitment to transparency and active management, Dominicé has gained the trust of investors looking for a stable and high-performing real estate investment strategy.
Why Invest in Listed Real Estate in Switzerland?
Real estate is widely recognized as a stable long-term investment, but direct property ownership comes with management responsibilities and liquidity constraints. Listed real estate investment funds, however, combine the benefits of physical real estate with the flexibility of a financial instrument.
“Listed real estate provides exposure to high-quality assets while maintaining the flexibility of a liquid investment. It offers potentially higher returns than bonds, particularly in a low-interest rate environment. It also allows investors to diversify their portfolios and hedge against inflation, a growing concern in modern economies,” explains Diego Reyes.
These funds enable investors to indirectly own a diversified portfolio of real estate assets without the burden of direct property management. Unlike direct real estate investments, listed real estate funds offer superior liquidity, allowing investors to buy or sell fund shares on the stock market at their convenience.
Read also: Transition to real estate funds | Dominicé
A More Attractive Investment Than Bonds
With Swiss interest rates remaining low, bonds no longer offer attractive risk-adjusted returns. “In this environment, traditional fixed-income investments generate little to no real yield”, shares Diego Reyes. “Listed real estate funds, however, provide steady rental income and long-term capital appreciation, making them a strong alternative for investors seeking higher returns and stability.”
Additionally, Swiss residential real estate funds tend to have a low correlation with traditional financial markets, meaning they can provide stability during periods of market volatility. This makes them an effective risk diversification tool for investment portfolios.
Read also: Towards a Return of Negative Interest Rates in Switzerland | Dominicé
Dominicé’s Listed Real Estate Fund: Key Advantages
Dominicé’s real estate investment fund focuses on premium residential properties in Western Switzerland, a region known for its strong economic fundamentals and attractive return potential. “The fund prioritizes high-quality assets in prime locations with long-term appreciation potential”, underlines Diego Reyes.
The fund also benefits from a tax-efficient structure for Swiss-domiciled private investors. Taxes on income and wealth are paid by the fund itself, often at more favorable rates than those applied to individual taxpayers or corporations. As a result, the invested capital is not subject to wealth tax, and the dividends received are already net of income tax. “This advantageous tax framework allows Swiss-based investors to access a profitable and fiscally efficient investment alternative compared to other asset classes”, he shares.
Beyond financial benefits, investing in a listed real estate fund also saves considerable time. Investors no longer need to manage administrative, technical, or legal aspects of property ownership. A team of professionals handles these responsibilities, optimizing costs and ensuring efficient portfolio management.
A Long-Term Vision and Prudent Management
At Dominicé, managing a listed real estate fund is not just about short-term returns but about maintaining a long-term vision and disciplined risk management. “We adopt a highly selective approach when acquiring assets and integrates key environmental and social factors into its acquisition and renovation processes”, explains Dominicé’s Senior Fund Manager. “This ensures that investments are not only profitable but also aligned with regulatory standards and sustainability principles”.
Prudent, targeted, and value-driven management is at the core of Dominicé’s philosophy, where client trust remains paramount. The fund operates with full transparency, providing regular and detailed reports so that each investor can monitor their portfolio’s performance with confidence.
“We adopt a highly selective approach when acquiring assets and integrates key environmental and social factors into its acquisition and renovation processes”
A Strategic Diversification Tool for Investors
As investment opportunities continue to evolve, investors actively seek to diversify their asset allocation. Listed real estate funds are an effective way to mitigate portfolio risk while maintaining exposure to real assets. They provide liquidity, stable rental income, and protection against inflation, making them an attractive investment option, particularly in a market where traditional bonds struggle to deliver returns.
Dominicé’s expertise in real estate investment in Switzerland provides investors with a resilient and well-managed solution to enhance their portfolios. The full article, published in the Tribune de Genève, explores in greater depth how listed real estate can play a key role in a diversified investment strategy.
Read also: Navigating in the fog | Dominicé
