In 2024, compenswiss achieved a positive investment result of 7.33%, compared to 4.98% in the previous year. Despite the favorable results of the last two years, the negative performance of –‍12.85% in 2022 could not be fully offset. The cumulative investment result for the last three years is therefore –‍1.80%.

The year 2024 was marked by the ongoing conflict between Russia and Ukraine and the threat of an escalation of military conflicts in the Middle East. However, the global financial markets were little affected by these geopolitical tensions and the associated economic uncertainties. In 2024, robust global growth set in. The stock market had a very positive year, thanks in part to the monetary policies of the central banks. In response to the unexpectedly low inflation, they embarked on a new cycle of interest rate cuts. Equity markets rose throughout the year. The Swiss Performance Index (SPI) rose by more than 6% in the reporting year, and the US S&P500 index by as much as 23%. Demand for gold also increased, with the gold price in Swiss francs rising by almost 37%. The exchange rate of the Swiss franc against the US dollar fell by over 7%.

Net returns of the individual social insurance schemes

compenswiss also benefited from the positive financial markets, as practically all asset classes ended the reporting year in substantial positive territory. The net return on assets at the end of 2024 was 7.33%, while the net return on cash was 1.55%. The net returns of the individual social insurance schemes amounted to 7.21% for OASI, 7.13% for InvI, and 7.13% for the LEC. The slight differences are due to the different levels of liquid assets held by the individual social security funds.

InvI's liabilities to OASI remain unchanged at CHF 10.3 billion. Forecasts for the financial outlook for the InvI deteriorated during the reporting year and the impact on the InvI Fund is being monitored with great concern.

The total assets managed by compenswiss increased by CHF 5.51 billion to CHF 46.13 billion (previous year: CHF 40.62 billion). Around half of these assets are managed internally. This increase includes the investment result of 7.33% or CHF 2.89 billion and the positive operation result of CHF 2.62 billion. The latter is largely due to the first effects of the VAT increase in 2024, which raised the standard rate from 7.7% to 8.1% following the enactment of the OASI 21 reform.

In 2024, as always, pension payments were guaranteed at all times.

Initiatives, proposals and their impact on the OASI

The popular "Initiative for a 13^th OASI pension payment" put to the vote in March 2024 was accepted by the Swiss people and the cantons. However, the "Pensions Initiative" that aimed to secure the long-term funding of OASI by raising the retirement age for men and women to 66 was rejected.

To implement the will of the people, the Federal Council and Parliament have decided on an annual payment of the 13^th OASI pension starting in December 2026 and on securing the long-term financing of the OASI. Various measures are currently being considered to ensure the OASI compensation fund remains in balance until 2030 and to adjust it to the financial situation of the Confederation. A lot depends on how and when the financing is implemented. According to the financial forecast of the Federal Social Insurance Office (FSIO), deferring implementation beyond 2026 would result in a negative operating result for the OASI fund from the year of introduction. This would place an additional burden of CHF 4 to 5 billion per year on the OASI fund.

Responsible investing

During the reporting period, compenswiss maintained its commitment to a responsible investment policy, aiming to integrate sustainability considerations in a manner consistent with legal requirements, including liquidity, security, and market-compliant returns, while managing the associated restrictions. As a founding member of the Swiss Association for Responsible Investment (SVVK-ASIR), compenswiss has further developed its measures to promote sustainable investment in 2024, focusing on the following four areas: ESG integration, exercising of voting rights, shareholder dialogue and exclusions.

Activities of the Board of Directors and its Committees

During the reporting period, the Board of Directors convened for four regular meetings, one special meeting, and one workshop. Key decisions included determining the annual asset allocation as well as focussing on the 13^th OASI pension payment and the deteriorating financial outlook of the InvI. Further emphasis was placed on the strategic management system and monitoring the implementation of the institution's strategic projects.

The Board of Directors' annual workshop in May focused on the implications of the 13^th OASI pension payment for the investment strategy and on the strategic management system.

In 2024, the Investment Committee held four ordinary meetings and one special meeting. As every year, the committee addressed the annual asset allocation and established its detailed allocation for 2025. Key discussions also focussed on the impact of the 13^th OASI pension payment and the possible consequences of the deterioration in the InvI’s financial outlook on the investment strategy.

In accordance with its mandate, the Audit and Personnel Committee held four regular meetings and reviewed the reports and matters pertaining to both external and internal audit. Regulatory aspects, human resources issues and topics related to communication were other areas of focus.

Picture: Patric Pop

Board of Directors
From left to right: Bruno Parnisari, Gabriela Medici, Ruth Meier, Manuel Leuthold, Adrian Wüthrich, Michaela Troyanov, Elisabeth Bourqui,
Hans-Ulrich Bigler, Cristina Maderni, Philippe Augsburger

Absentees: Verena Bernhard, Urs Eggenberger, Roland A. Müller

Operations and resources

At the end of 2024, compenswiss employed 62 members of staff or 57 FTE (2023: 63 people or 59 FTE).

The ratio of operating costs to assets remains low at 0.11%(2023: 0.11%). Taking into account the costs included in the investment result
(stamp duty, management fees for external funds, performance fee), this ratio rises to 0.18% for 2024 (2023: 0.19%). The annual budget was once again adhered to in the year under review.

In 2024, important projects and technological changes were implemented at the Management Office: The transition to the new global custodian bank went smoothly and was completed by the end of July 2024. The results achieved are very satisfactory and represent a significant step forward for compenswiss. The change also led to annual savings of roughly half a million Swiss francs for the insured. Thanks to its experience, technical skills and financial solidity, the new partner will further be able to provide the institution with significant support for future developments. 

The transition to the new global custodian bank and the implementation of the new portfolio management system are both instrumental in standardizing processes and reducing complexity. The simultaneous migration to MS365 and the reorganisation of information management allow compenswiss to adapt to the requirements of good governance. Efficiency and resilience were key considerations in the deployment of these strategic projects.

In anticipation of the first payout of the 13^th OASI pension payment in December 2026, the additional financing of which has not yet been approved by Parliament, the Executive Committee examined the potential impact of this new pension on the OASI fund and developed appropriate investment scenarios. It also addressed the financial outlook calculated by the FSIO for the InvI, which has deteriorated sharply for the coming years due to an increase in new pensions and lower rates of dismissal. In addition, the Executive Committee prepared the introduction of the new accounting standards (IPSAS) due to the Accounting Ordinance’s entry into force on 1^st January 2025.

During the year, the Management Office again organised an awareness campaign that included a series of interactive training modules on information security. In addition, three conferences were held with external speakers on the topic of "Integrity and Ethics in the Financial Sector" with the aim of promoting the internal culture and values of compenswiss. In the autumn, employees also attended a conference on artificial intelligence.

The selection of the new global custodian bank, the ongoing ESG discussions and the introduction of the 13^th OASI pension payment have generated significant public interest in compenswiss. Enquiries from the media, politicians and the public have highlighted the need for comprehensive and transparent communication. compenswiss is committed to providing sound and factual information about its activities in managing the assets entrusted to it.

Changes in the Board of Directors and acknowledgements

Mrs Ruth Meier, member of the Board of Directors since 2020, has been newly nominated by the Swiss Federal Council as Vice-Chairwoman of the Board of Directors for a term of office from 2024 to 2027 and has been elected by the Board of Directors as Chairwoman of the Audit and Personnel Committee. Mr Philippe Augsburger, member of the Board of Directors since 2023, took over as Chairman of the Investment Committee. We look forward to working with them and wish them both every success in their new roles. 

After 17 years in office, Mr Urs Eggenberger stepped down from the Board of Directors and the Investment Committee as a representative of the Federal Department of Finance on 31^st December 2024. We thank Mr Eggenberger for his long-standing commitment and wish him all the best for the future.

We thank the members of the Board of Directors and all employees for their tireless efforts and dedication over the past financial year.

Picture: Patric Pop

Executive Committee
From left to right: Francesca Azzi Price, Marc Pfenninger, Gaëlle Barlet, Vivien Ravel, Eric Breval, Frank Juliano

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