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.

1. The management of the assets of the Substitute Occupational Benefit Institution is done in the interest of the beneficiaries.
2. The Substitute Occupational Benefit Institution invests only where the investment risk, taking into account the implementation costs, is offset by a risk premium that can be explained economically.
3. The risk management of the Substitute Occupational Benefit Institution is focused on recognising, quantifying and managing risks.
4. Basically, in terms of asset management, the Substitute Occupational Benefit Institution does not start from the belief that it can forecast the development of financial markets and macroeconomic variables. In making investments, however, it takes into account various scenarios in this regard.
5. The organisation is set up in such a way that all investment decisions are clear and level-appropriate, subject to expert knowledge and regularly monitored.
6. As an investor, the management of the Substitute Occupational Benefit Institution is aware of ethical, environmental and social responsibilities and takes them into account in making investment decisions.
7. The main investment orders are placed under competitive conditions.

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 July 2021:

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: