mast image

Special Report

Impact investing

Sections

Swiss roundup: PVK, First Swiss, Stiftung Abendrot

Related images

  • Night view of Bern and Aare River, Switzerland

Tags

Related Categories

PVK, the CHF2bn (€1.62bn) Pensionskasse for the city of Bern, has confirmed it will lower the discount rate and call on employees to increase their contributions.

The trustee board accepted the proposal to increase the funding gap over the short term to adjust the technical parameters.

The PVK is looking at a shortfall of CHF341m from next year – the deficit is currently CHF108m – but it has 40 years to achieve full funding, as the city of Bern opted for Switzerland’s part-capitalisation model.

From 2015, employees will have to increase their contributions, the pension for members’ spouses will be cut and the vesting period to achieve the highest conversion rate will be expanded.

<

The board expects the fund to generate another CHF200m through investment returns.

In other news, verdicts have been handed down in the 2006 embezzlement case at the First Swiss Pensionskasse.

Former trustees, the president and his deputy were accused of embezzling more than CHF33m from the scheme.

They were sentenced to time in prison but have appealed the verdict, according to Vorsorgeforum, the Swiss platform on the second pillar.

The judges noted that the management board never had any authorisation to transfer assets to a third party.

The defendants’ legal representatives conceded that their clients’ choice of external asset manager had been “a mistake”, notwithstanding good references.

The judges also placed part of the blame on the supervisory authorities – particularly the Swiss Social Ministry BSV – which, they said, took too long to intervene.

Lastly, the CHF1bn Swiss collective pension fund Stiftung Abendrot, which investing solely according to ESG criteria, has reported a 5% performance, as of the end of November.

In the previous year, the fund had returned just over 6%.

Based on this annual performance, the trustee board decided to guarantee a 1.75% interest on active members’ assets, slightly higher than the 1.5% granted in 2012.

Have your say

You must sign in to make a comment

IPE QUEST

Your first step in manager selection...

IPE Quest is a manager search facility that connects institutional investors and asset managers.

  • QN-2548

    Asset class: Fixed Income, Emerging Market Debt Hard Currency (Active).
    Asset region: Emerging Markets.
    Size: CHF 300-400m.
    Closing date: 2019-07-30.

  • QN-2549

    Asset class: Fixed Income, Emerging Market Debt Hard Currency (Passive or Passive Enhanced).
    Asset region: Emerging Markets.
    Size: CHF 300-700m.
    Closing date: 2019-07-30.

  • QN-2550

    Asset class: Fixed Income, Emerging Market Debt Local Currency (Active).
    Asset region: Emerging Markets.
    Size: CHF 250-350m.
    Closing date: 2019-07-31.

  • QN-2551

    Asset class: Fixed Income, Emerging Market Debt Local Currency (Passive or Passive Enhanced).
    Asset region: Emerging Markets.
    Size: CHF 250-350m.
    Closing date: 2019-07-31.

  • QN-2552

    Asset class: Fixed Income, High Yield (Active).
    Asset region: High Yield (US).
    Size: CHF 500-600m.
    Closing date: 2019-07-29.

  • QN-2553

    Asset class: Fixed Income, High Yield (Passive or Passive Enhanced).
    Asset region: High Yield (US).
    Size: CHF 500-1'100m.
    Closing date: 2019-07-29.

  • QN-2554

    Asset class: Global Real Estate (Equity, unlisted Funds).
    Asset region: World (ex-Switzerland).
    Size: CHF 200 mn (potential for further growth).
    Closing date: 2019-08-07.

  • QN-2555

    Asset class: Real Estate.
    Asset region: European.
    Size: EUR 50 - 100 million.
    Closing date: 2019-07-22.

  • QN-2556

    Asset class: FX Hedging.
    Asset region: Global.
    Size: Mandate size of CHF 1.5 bn.
    Closing date: 2019-08-09.

  • QN-2557

    Asset class: All/large Cap Equities.
    Asset region: China A-shares.
    Size: Unit linked platform (0m USD in initial investment).
    Closing date: 2019-08-01.

Begin Your Search Here
<