Alternative capital strategies
ETF Arbitrage for Foundations, Family Offices and Pension Funds
For foundations, pension funds, family offices, asset managers and corporates: how a market-neutral ETF arbitrage strategy with risk class 3 out of 7 can make your assets less dependent on the stock market – and how you can gain exclusive access.
Anyone who manages assets on behalf of others or for a specific purpose is under particular pressure. A foundation board has to fund the foundation’s purpose for the long term. A pension fund has to meet its commitments over decades. A family office is expected to preserve wealth across generations. And every decision has to stand up to committees, supervisory authorities or shareholders.
2022 showed where the traditional allocation reaches its limits: equities and bonds fell at the same time. Since then, many investment committees have been asking: Is there a source of return that does not depend on market direction – with a manageable, clearly documented level of risk?
One answer can be the ETF Arbitrage Strategy of a Swiss asset manager. It is not publicly listed. You can gain exclusive access through me.
What the strategy does
Large ETFs track a basket of many individual securities. When these move quickly, the ETF price often follows with a short delay. For a moment, price and value do not match. An automated and monitored trading system buys the cheaper side and sells the more expensive side at the same time. When the gap closes, the return is generated.
Because long and short positions hedge each other, the strategy is delta-neutral: whether markets rise or fall has little effect on the result. I explain how this works in detail in the article ETF Arbitrage: How It Works, Opportunities and Risks.
Risk class 3 out of 7: why it matters to committees
The key information document places the strategy in risk class 3 out of 7. A broad equity ETF is usually one or two levels higher. For investment committees, foundation supervisory authorities and boards, this is a clear, Europe-wide standard for classifying a new building block and justifying the decision.
The rating reflects volatility and credit risk, not future returns. Losses up to and including total loss remain possible.
The questions your organisation is asking
Foundations: Capital preservation and the foundation’s purpose come first. A market-neutral building block makes the foundation’s assets less dependent on the stock market cycle. The certificate is accumulating by default. Above a certain investment amount, however, the returns can easily be paid out – so funds flow to the foundation’s purpose without touching its capital. I am happy to discuss the exact conditions in a personal conversation. Check in advance whether the investment fits your statutes and investment policy. Access for foundations from CHF 1 million.
Pension funds, pension schemes and professional pension plans: Long-term liabilities cannot afford deep drawdowns at the wrong time. A source of return with low dependence on equity and interest rate markets can noticeably stabilise the overall portfolio. Whether, and up to what allocation, the investment is permitted depends on the applicable investment regulations.
Family offices: What counts is genuine diversification and a robust review. The strategy has a monthly documented track record since July 2024, plus the key information document and offering documents for thorough due diligence.
Asset managers: For your clients, the strategy can be a complementary, market-neutral building block that is not available on the public market.
Corporates: Liquidity that will not be needed for at least twelve months can generate returns here, independent of stock market cycles, instead of sitting in a bank account. Because of the minimum holding period, it is usually not suitable as an operating reserve. Accounting and tax treatment should be agreed with your tax adviser. Access for corporates from CHF 500,000.
Key figures at a glance
- Source of return: price differences between ETFs and their baskets of securities, not market direction
- Risk class 3 out of 7 according to the key information document
- Every month positive at month-end since July 2024; 2025: +28.31% net in US dollars
- Minimum investment: foundations from CHF 1 million, corporates from CHF 500,000, private individuals from CHF 100,000
- Certificate (AMC), accumulating by default, payout of returns possible above a certain investment amount; held in segregated accounts with a Swiss custodian bank; base currency US dollar
- Minimum holding period 12 months, then redemption usually monthly with 30 days’ notice
- No management fee, 50% performance fee with high-water mark
Past performance is not a reliable indicator of future results. Because the strategy is calculated in US dollars, exchange rates can improve or reduce the result in euros or Swiss francs.
Exclusive access through me
The strategy is not publicly listed. You can buy it neither on an exchange nor through your bank. I provide access and all the information your committees need for a decision:
- A first overview via the factsheet
- A conversation on how it fits your investment policy
- Contact with the asset manager (key information document, performance records) and support through to implementation
Go to the factsheet on the ETF Arbitrage Strategy →
Frequently Asked Questions
Is the ETF Arbitrage Strategy suitable for foundations?
Yes. It can be a market-neutral building block for a foundation’s assets, with risk class 3 out of 7. Above a certain investment amount, the returns can be paid out, so ongoing funds for the foundation’s purpose are possible. The statutes and investment policy need to be checked. Access for foundations starts at CHF 1 million.
What does risk class 3 out of 7 mean?
The rating in the key information document under the EU PRIIPs Regulation ranges from 1 (low) to 7 (high). Class 3 stands for medium-low risk. It describes volatility and credit risk, not future returns.
What is the minimum investment?
For foundations from CHF 1 million, for corporates from CHF 500,000 and for private individuals from CHF 100,000. For pension funds, family offices and asset managers, I clarify the terms in a conversation.
Can I buy the strategy through my bank?
No. It is not publicly listed. You get access through me.
How quickly is the capital available again?
After a minimum holding period of 12 months, redemption is usually possible monthly with 30 days’ notice.
Conclusion
For foundations, pension funds, family offices, asset managers and corporates, the ETF Arbitrage Strategy can be a source of return that works largely independently of market direction. Risk class 3 out of 7 and a monthly documented track record make it easy for committees to assess. Access is not available on the public market, but exclusively through me.
I’ll support you from assessing your personal situation through to making a decision and putting it into practice. To do so, I connect you with selected partners.
This article is for general information only and does not constitute investment advice or a personal investment recommendation. The strategy is not aimed at retail investors; availability depends, among other things, on investor category and domicile. Investments involve risks up to and including total loss. Past performance is not a reliable indicator of future results. The current binding product documents are authoritative. As of September 2026.
