The competence center for charitable foundations How foundations can invest in today's challenging environment
Foundations in Switzerland face challenging conditions. The new Credit Suisse "Foundations Mandate" is aimed at helping foundation board members to perform their asset management tasks.
Asset management is accorded special attention by foundations, given the extent to which it determines their ability to fulfil their charitable purpose. At the same time, investment is an increasingly important tool for enabling foundations to make an impact and is therefore likely to continue growing in the future.
Foundations face an increasingly challenging environment
"Having the right investment strategy is more essential than ever to ensure foundations can maintain their activities and optimize their impact," says Isabelle von Jeinsen, Head of the Competence Center Charitable Foundations at Credit Suisse. "For a long time, many charitable foundations tended to take a fairly passive approach to asset management." Due to the long period of persistently low interest rates and a changing risk appetite, awareness of a more active, progressive approach to financial matters has developed, she explains.
This is precisely where the new Credit Suisse Foundations Mandate – which is available exclusively to charitable foundations – comes in. The mandate consists of a diversified, actively managed core solution that pursues a global equity allocation with a focus on Swiss stocks.
It is designed at providing the best possible support to charitable foundations to enable them to pursue their individual goals. In this way, a foundation can have its assets professionally managed while taking into account factors such as risk tolerance and expected returns. In addition to achieving a market-oriented return, the Foundations Mandate strives to address sustainability issues.
Investments that match a foundation's purpose and values
Furthermore, this investment solution enables a foundation to invest capital in a way that matches its purpose and its own values. In addition, the aim is to meet the individual requirements for an investment strategy and at the same time achieve adequate risk mitigation. To achieve this, the portfolio managers work closely with experts on sustainable and impact-oriented investments.
Credit Suisse: a long-standing tradition in philanthropy
The launch of this product – which is exclusively available to tax-exempt foundations – enables Credit Suisse to supplement its existing offering for foundations domiciled in Switzerland at the same time as strengthen its support for the philanthropy sector.
Credit Suisse has been committed to charitable foundations for over 20 years. Thanks to the many years of experience and expertise of its in-house specialists, the bank is ideally positioned to help foundations pursue their goals in an optimum manner. Launched in 2019, the Competence Center Charitable Foundations is a key element of the bank's philanthropy offering and supports founders as well as foundation board members throughout a foundation's life cycle.