Target return of up to 5.5%. With a clear term.

Income is a wealth-management mandate with a fixed term: you choose 3, 6 or 12 months; we invest your money in a maturity-matched bond portfolio – from money market and government bonds via corporate bonds through to a targeted allocation to high-yield and emerging-market bonds. The maturities of the securities are aligned with the end of your term; all foreign-currency positions are fully hedged into euro.

You start from 20,000 euros; subsequent contributions are possible from 5,000 euros – each contribution starts its own term. Through investing in funds you are protected to an unlimited amount against insolvency of the custodian bank or of ZUWAX. Overnight or fixed-term deposits, by contrast, are covered by statutory deposit protection only up to 100,000 euros.

In addition to target-maturity ETFs, actively managed funds are also used, in which we invest for you on institutional terms. In doing so we forgo securities with synthetic replication (swap ETFs) in order to exclude counterparty risk. Total costs, including securities, custody, trading and ongoing management, lie depending on the investment amount between 0.45 and 0.70 percent p.a. and are charged directly against your portfolio.

Income is suitable for anyone who wishes to invest part of their assets in a security-oriented and return-strong manner – and who can plan this money for a term of 3, 6 or 12 months.

Within overall wealth, Income takes the role of the interest-bearing reserve: when a tranche matures, liquidity is available to you without your having to tap your capital-market portfolio and sell securities such as equities at a loss in unfavourable market phases. With staggered maturities (a yield ladder), you ensure that a tranche falls due regularly. At banks, by contrast, you receive barely any interest on your liquidity and, for large amounts, quickly exceed the deposit guarantee. For discerning investors who value return and security, and especially for large amounts, Income is therefore the ideal building block within overall wealth.

Income is less suitable for money you need to access at any time: an early sale is possible on any trading day at market value, but then the elevated target return of your term no longer applies.

Compared with overnight deposits, ZUWAX Income offers the advantage of a significantly higher target return and – for larger amounts – the advantage of greater security, because your investment is protected as special assets in unlimited amount rather than only up to 100,000 euros.

Target returns are aligned with the current market interest-rate level. You therefore do not need to constantly move your money between different accounts in search of an attractive rate, and you do not need “rate hopping”. Banks, by contrast, often pass on rate increases to their customers only in part and with some delay.

To that end you commit to a term with Income – Income is not a substitute for the emergency reserve in your current account, but for money that would otherwise sit uninvested at your bank. Unlike with a fixed-term deposit, however, an early sale at market value remains possible at any time.

Fixed-term deposits have three structural weaknesses: the rate is usually well below the market level and is frozen at conclusion – rising rates pass you by. Your money is locked until maturity, without exception. And statutory deposit protection ends at 100,000 euros.

Income addresses all three points: with up to 5.5% p.a., target returns lie clearly above the average fixed-deposit rate, because through bonds you capture risk premiums that banks retain for themselves on deposits. In an emergency you can access your money on every trading day at market value. And your investment is protected as Sondervermögen to an unlimited amount.

Important for your decision: unlike a term deposit, the return is not guaranteed – it is an expected return that is largely plannable if held to maturity, but can fluctuate and, in adverse market phases, also be lower or negative.

The return of Income is driven by the interest-rate environment as well as by term and risk premia of bonds.

Income aims to outperform the Euro Short-Term Rate (€STR) after costs by a clear margin – through broad diversification across credit-risk and emerging-market segments as well as bond maturities aligned with the end of your chosen term. The longer you commit, the higher the premiums the portfolio can capture – which is why the target return rises from 4.2% (3 months) via 4.8% (6 months) to 5.5% p.a. (12 months).

Your Income portfolio is monitored continuously and managed actively.

Income invests via several building blocks in a broad spectrum of fixed-income investments – from money market and government bonds via investment-grade corporate bonds through to high-yield and emerging-market bonds. The strategic allocation is reviewed and optimised once a year by our investment team.

Throughout the year we monitor your portfolio on an ongoing basis. We aim to trigger as few transactions as possible, as these always entail indirect costs and, in some cases, tax charges. Nevertheless, we can respond flexibly to a changing interest-rate environment and – depending on market conditions – make adjustments across asset classes, regions and remaining maturities, always aligned with the maturity of your tranches.

Income invests in physical ETFs – including target-maturity ETFs with a fixed maturity – as well as in selected actively managed funds, across several building blocks from money market to emerging-market bonds.

We invest in physical ETFs that are sufficiently diversified and liquid, as well as in institutional funds. The portfolio includes money-market instruments, government and corporate bonds of good to very good credit quality, and high-yield and emerging-market bonds. Maturities are aligned with the end of your term; all foreign-currency positions are fully hedged into euro.

In addition to direct and indirect costs, when selecting securities we pay attention to tax aspects, size, history, tradability, liquidity and the replication method. We keep a constant eye on the dynamic ETF market and replace the funds in your portfolio as soon as better alternatives arise. The selection process for active funds follows strict criteria and takes into account qualitative as well as quantitative aspects.

Income is optimised for low fluctuations, takes on no currency or counterparty risks and is broadly diversified across several asset classes. Unlike call money or fixed-term deposits, however, value fluctuation is not equal to zero – and the target return is not guaranteed.

When held to maturity, the expected return is largely predictable because the maturities of the bonds are aligned with your term. Price fluctuations become relevant primarily in the event of an early sale: the market value may then lie below the amount invested. Owing to the allocation to high-yield and emerging-market bonds, temporary declines may also occur in stress phases, and defaults by individual issuers can reduce the return.

Income takes on no foreign-currency risks. Although the portfolio also invests in globally diversified bonds, including emerging-market bonds, all foreign-currency positions are fully hedged into euro. This hedge is essential in order to enable low fluctuations and stable returns.

Your investment is fully allocated to broadly diversified physical ETFs and funds and is thereby held as Sondervermögen in your name. You are thus protected to an unlimited amount against insolvency of the custodian bank or of ZUWAX. By contrast, call-money or fixed-term deposits are covered by the statutory deposit guarantee only up to EUR 100,000. At the same time, the portfolio forgoes ETFs with synthetic replication, so that no counterparty risk arises.

Yes. Unlike with a fixed-term deposit, your money is not tightly locked: you can sell your investment on every trading day at the current market value. Payment is generally made within a few banking days to your reference account.

In the event of an early sale, the increased target return of your chosen term lapses, and the market value may, depending on market conditions, lie below the amount you invested. Income is therefore intended for money you can do without for the chosen term – early exit is the emergency option, not the normal case.

You decide: either you have your balance paid out, or you roll it into a new term of 3, 6 or 12 months – at the then prevailing target returns.

If you do not give an instruction, we will automatically pay out your balance to your reference account. There is no tacit extension for Income.