Asset investment is the third contributor to your pot – and therefore the focus of UWP's work
1928 Mio.
Investment assets4.6 % p.a.
2010-2020 net return0.35 % p.a.
Asset management costsAsset investments at UWP
Sound asset investment is the most important factor in the success of a pension fund. The investment income forms the third contribution, alongside the employee and employer contributions.
UWP is a pensions platform on which different asset investment vehicles (investment pools) are operated.
Larger affiliated companies or groups of companies with pension assets in excess of CHF 5 million have the option of setting up and operating their own investment vehicle. In particular, those companies that until now have run their own pension fund can simply transfer this to UWP and continue to operate their pension solution largely as before but with considerably lower outlay.
Our principles
Investment strategy
The investment strategy, i.e. the distribution of the investment assets across asset classes such as equities, real estate, bonds etc. is decisive in the long term for the achievable returns. It is therefore essential to define investment strategies for each investment vehicle at UWP that correspond with the structure of insured members and customer requirements.
Transparent implementation
In order to avoid conflicts of interest and meet today's governance requirements, the investment strategy must be defined and implemented by separate bodies. In terms of implementation the Foundation attaches importance to ensuring that as far as possible only transparent investments are made, with a clear focus on equities, real estate and bonds. UWP believes that structured products and most alternative investments are of little help in achieving the investment returns required in the long term.
Low asset management costs
Each franc paid out in asset investment costs must first be earned and offset by corresponding additional returns. Particularly at times when it is difficult to achieve the required investment returns, all the more attention must be paid to cost-efficient implementation. Structured products and alternative investments generally also score badly in this respect.
Our open asset pools
There are five asset pools open to smaller companies or companies not wishing to operate their own investment vehicle at UWP.
|
Key figures per 31.10.2022 |
Primo (Pool 1) |
Pari (Pool 9) |
Alto (Pool 10) |
Terra (Pool 22) |
Solo (Pool 34) |
|
|---|---|---|---|---|---|---|
| Cover ratio (provisional) | 107.3% | 99.3% | 103.5% | 102.7% | 102.6% | |
| Investment volume (in CHF 1'000) | 578'403 | 57'857 | 46'445 | 132'430 | 13'547 | |
| Number of pension funds | 378 | 48 | 46 | 64 | 4 | |
| Number of insured members | 3’597 | 524 | 113 | 959 | 162 | |
| Performance YTD | -11.1% | -9.5% | -9.8% | -7.8% | -13.4% | |
| Investment strategy | Bonds | 30% | 59% | 40% | 25% | 45% |
| Equities | 35% | 26% | 45% | 25% | 32% | |
| Alternative | 10% | 0% | 0% | 0% | 13% | |
| Real estate | 25% | 15% | 15% | 50% | 10% | |
| Asset manager |
Bank Baumann & Cie. Pictet Asset Crédit Suisse AG Trafina AG Albin Kistler AG |
Swisscanto via Bank CLER |
Swisscanto via Bank CLER |
J. Safra Sarasin |
Bank CIC |
|
Our real estate
UWP has for a long time invested the pension fund assets entrusted to it in direct real estate investments. Careful selection of properties according to the correct criteria is key.
The UWP real estate portfolio is excluded from the asset management mandates of the banks. The foundation has therefore created a real estate committee comprising two members of the Board of Trustees and two external real estate specialists. This committee regularly assesses the properties already held in terms of their intrinsic value and maintenance requirements and proposes any necessary changes to the Board of Trustees. The real estate committee also systematically seeks and evaluates interesting new properties according to a policy developed by UWP itself. The purchase decision always lies with the Board of Trustees.
Core investment criteria include the following:
- Good location within the municipality, well connected to transport and infrastructure facilities
- Largely residential property
- Sole ownership only
- Regular maintenance documented
- Resalability guaranteed
- Attractive layout
- Purchase price in the order of CHF 2-10 million
- Apartments/unit ≥ 8 apartments
- Gross return ≥ 5% p.a.
- Average vacancy in the last 3 years < 10% of net rental income
- Tenant fluctuation < 15% per year on average over the last 3 years (measured in terms of net rental income)
UWP currently holds around CHF 180 million of investments in direct real estate, which is equivalent to around 440 apartments. These properties have made a constant and valuable contribution to the foundation's investment success in recent years. The following map shows the locations of these properties.
Properties are located in:
Allschwil, Basel, Dulliken, Frenkendorf, Gelfingen-Hitzkirch, Giffers, Gossau, Herzogenbuchsee, Kreuzlingen, Laufen, Liesberg, Muttenz, Nunningen, Oberburg, Obergösgen, Oberwil, Oetwil, Reinach, Riehen, Rüti, Spreitenbach, St. Gallen, Stüsslingen, Sumiswald, Wangen b. Olten, Wohlen