Asset Management

The Board of Trustees is responsible for managing the Fund’s assets. In particular, it defines the investment principles and objectives of wealth management, the execution of the investment process and its monitoring. It decided to delegate the implementation of the investment strategy to the Investment Committee.

The investment strategy is defined in the form of a strategic asset allocation. This refers to the optimal distribution of Fund assets among various asset classes that seeks, over the long-term, to cover its commitments at an acceptable level of risk. This strategic asset allocation respects the principle of an appropriate allocation of risks by being well diversified between asset classes, economic sectors and geographical regions. It is validated following an “Asset Liability Management” (ALM) study.

In addition, the Fund undertakes to add, to the extent possible but in a formal manner, environmental social and corporate governance (“ESG”) criteria to the return, risk and cost parameters when formulating its investment strategy and managing its assets.

The strategic asset allocation is implemented through the monthly rebalancing process. It consists of measuring the allocation gaps between the investments and the strategy in order to decide on the transactions to be carried out (purchases or sales) to minimize these gaps while ensuring liquidity needs and controlling costs.

In general, the Fund assets are invested in pooled funds managed by professional wealth management firms.

 

Asset allocation

The Fund’s assets were allocated as follows :

Allocation in %
31.12.2018
31.12.2017
Strategic
allocation
Liquidities and short-term investments 2.0 3.4 3.0
Equities 32.6 36.3 33.0
Private Equities 5.7 6.1 7.0
Bonds 36.5 33.4 35.0
Real estate Switzerland 16.3 14.4 15.0
Real estate International 6.5 6.1 7.0
Hedge funds 0.3 0.3 0.0
Total 100.0 100.0 100.0

Performances

Performances in % 2018 2017 2016 2015 2014
Fund -4.0% 9.1% 5.9% -1.8% 7.2%
Fund’s investements strategy -3.3% 9.5% 6.2% -1.9% 8.8%