2021 Survey Report
Swiss pension funds have spent a lot of time and effort over the last decades to optimise their liabilities and improve their financial position for years to come. However, the same cannot be said for the asset side: Investment returns are decreasing, putting the financing of the pension benefits and, ultimately, the plan members’ wellbeing in danger.
Often, inefficiencies in the investment process account for many of the challenges faced and opportunities missed by the pension funds. This is where investment delegation to an external provider can add significant benefits, not only by freeing up time for other tasks, but also by ensuring a strong governance and access to attractive asset classes. Many pension funds are aware of these potential benefits:
Graph: What do they expect from successful delegation?
But what is the status quo in Switzerland: Do pension funds really delegate their investments, and to what extent? Do they encounter barriers? And where would be areas for improvement?
With our Investment Delegation Survey Report 2021, conducted together with the University of Zurich, we aim to shed light on some of the key areas that affect the investment strategy and performance of pension funds in Switzerland, and how they might use delegation as part of this strategy. In particular, we want to focus on the asset allocation and investment processes/implementation as the key drivers for investment efficiency, effectiveness and returns. In total, 46 Swiss pension funds of all sizes (from small to very large) have participated in the survey, representing a total of >150 billion CHF assets under management (AUM).