How does the pension fund invest its assets?

July 15, 2019
Pension fund
How does the Pension Fund manage the assets at its disposal? Which criteria play a role? You will find answers to these questions in the following article.

Securing benefits through asset-liability management

The Pension Fund manages its assets in such a way that the regulatory benefits are secured at all times.

Accordingly, the pension fund's investments are aligned with its obligations. Since both the investments and the obligations change over time, an annual review of the asset-liability management (ALM) takes place.

Consequently, the Board of Trustees determines the investment strategy, taking into account the results of the ALM analysis. The investment strategy is largely responsible for the return generated by the securities portfolio.

Overview of investments

  Investment strategy Portfolio as at 01.01.2019  
  Percentage Percentage in Mio. CHF
Liquidity 2% 1,6% 37
Bonds CHF 15% 18,6% 430
Foreign currency bonds 12% 10,7% 247
Mortgages 14% 15,5% 358
Real estate 22% 21,3% 493
Swiss shares 12% 11,9% 276
Shares abroad 11% 8,8% 204
Alternative investments 12% 11,6% 269
Total 100% 100% 2314

Criteria for investments of assets

The decisive criteria for the investment of assets under consideration of a long-term investment horizon are as follows