Investment Themes Invest like a Swiss pension fund – sustainably!

Invest like a Swiss pension fund – sustainably!

Are you looking for a long-term strategic investment that is active in the markets without being hasty? Do you need a suitable instrument for building up your savings? Perhaps you are planning for a private pension, your child’s education, or your dream house? Are you set to retire soon and seeking a way to draw on your savings while continuing to invest? The four Privilege funds from Credit Suisse Asset Management offer the right solutions to help you achieve these goals and many others.

The flood of information on the financial markets often leads investors to focus only on the latest news. However, experience shows that around 80% of investment performance comes from long-term strategies (i.e. the relative weighting of asset classes like equities or bonds) rather than from short-term decisions for or against particular securities. The Privilege family of funds from Credit Suisse Asset Management is based on precisely this principle: it offers four broadly diversified, actively managed, and risk-optimized investment strategies with different equity weightings. 

Broad exposure to financial markets

While the funds follow the rules of the Swiss pension fund industry, they are freely available to all investors. Pensioners, for example, can take advantage of a Privilege fund to transfer investments with a similar strategy out of pillar three and into free assets. These funds are also attractive as a core investment for younger investors owing to their long-term approach. Applying a professional strategy that incorporates sustainability criteria and adapts to the market situation, Privilege funds provide a way of participating in the financial markets with modest sums. They are a safe pair of hands for the long term.

One fund family, four risk profiles

The Privilege concept encompasses four different risk profiles – Privilege 20, Privilege 35, Privilege 45, and Privilege 75. The numbers indicate the strategic equity weighting. The higher the percentage in equities, the higher the expected return – and the greater the risk. 

Invest like a pension fund – sustainably and without restrictions

Pension funds and retirement savings vehicles in general are the epitome of conservative, long-term investments in Switzerland. For such vehicles to achieve the status of pension plans, they must comply with strict rules on risk and diversification, such as the Swiss Federal Law on Occupational Retirement, Survivors' and Disability Pension Plans (BVG) and its associated Occupational Pensions Ordinances (OPO 2 and OPO 3). However, these investment strategies can also be attractive to a broad range of investors beyond those looking for tax-efficient savings.

As the Privilege funds are based on the BVG/OPO rules, their investment approach is similar to a pension fund: you get a broadly diversified investment solution oriented on the long term with a clear focus on the Swiss equity and bond markets. Your assets, however, remain freely available, and there are no restrictions on the amount invested, transferability, or accessibility.

Proven concept

We actively manage the funds following Credit Suisse’s professional investment process. Fund managers also enjoy access to the investment expertise of the entire bank. The oldest member of the Privilege family, Privilege 45, has been open to investors for over 20 years, and the fund management team is highly experienced.

All four funds follow Credit Suisse’s comprehensive approach to sustainability, which actively takes environmental, social, and corporate governance criteria into consideration and excludes problematic investments.

In short: The Privilege funds represent four proven investment solutions with different equity weightings. They are suitable for anyone looking to invest in a professionally managed, broadly diversified, multi-asset-class fund with a special focus on Switzerland.

Risks inherent in the Privilege funds

  • Returns depend on the strategy, correct market views, asset allocation, and selected securities.
  • Returns may be affected by exchange rate fluctuations.
  • The liquidity of the instruments depends on the invested securities and the prevailing market environment.
  • Investors may lose part or all of their invested capital.