The risk profile of the vested benefits accounts business area requires an investment strategy in which the focus is on safety – a dynamic investment strategy has been chosen: it is modified systematically according to the financial situation.
|Investment Categories||Lower Bandwidth||SAA||Upper Bandwidth|
|Liquidity / Short Duration||32.5%||47.5%||65.0%|
|Emerging Markets Equities||1.0%||2.0%||3.0%|
|Swiss Real Estate||2.0%||7.0%||10.0%|
|Global Real Estate||0.0%||0.0%||2.0%|
Clear separation of roles and external asset management
The investment organisation of the Substitute Occupational Benefit Institution differentiates between the roles of "Definition of principles", "Operational implementation" and "Monitoring".
The principles are defined and mandates awarded by the Board of Trustees and the investment committee.
The office implements, or ensures the implementation of, the decisions taken by the Board of Trustees and the investment committee in conjunction with the partners in the capital investment unit and monitors their implementation.
In principle, the decision about which securities to buy or sell is taken by external portfolio managers.
The entire investment activity is monitored with the assistance of external controllers.
Statement for the subject "responsible investment"
For the administrative bodies of the Substitute Occupational Benefit Institution, the successful long-term investment of capital consistent with the fiduciary duty of care laid down by law is of key importance. The investment strategy and its implementation are designed to achieve the best possible return on the capital invested given the limited risk capacity. Since administration costs have been shown to have a direct and considerable influence on long-term returns, the Substitute Occupational Benefit Institution takes great care to ensure that the investment strategy is implemented efficiently and at minimum cost. Asset management mandates are awarded on the basis of open competition. ESG criteria are among those applied when awarding them.
The Substitute Occupational Benefit Institution expressly refrains from investing in firms that do not comply with the Oslo Agreements on the production and distribution of cluster bombs and anti-personnel mines. Nor will it invest in food futures contracts. The Substitute Occupational Benefit Institution also complies with all sanctions imposed by Switzerland and the UN.
The voting rights acquired by the Substitute Occupational Benefit Institution through its holdings in listed Swiss companies are exercised actively and without exception in the interests of its insured members. It exercises them with a particular concern for the sustainable increase of the fund assets (pursuant to Art. 71 para. 1 BVG).
The actual asset management is performed exclusively via asset management mandates awarded to external portfolio managers (banks or other specialist institutions) or, in individual cases, to portfolio managers within the Substitute Occupational Benefit Institution.
Asset management mandates as at 1st April 2019:
|Loans to public corporations|
|Emerging Markets Equities|
|Swiss Real Estate|
|Global Real Estate|
The data relating to the investment activities of the portfolio managers is transmitted to and monitored by the global custodian and the fund administration, and analysed in detail and commented by the investment controller at least once a quarter.
Global custody mandates and consulting / controlling:
|Global custodian||Banque Pictet & Cie SA|
|Fund company||FundPartner Solutions (Suisse) SA|
|Investment controller||PPCmetrics Ltd.|
|Shareholder Meeting Analyses: Swiss Companies||Ethos Services Ltd.|