The investment policy for the social security funds must guarantee the solvency of the three social insurance schemes (OASI, InvI, LEC) at all times. To this end, the governing and executive bodies of compenswiss have set the target of a real return over the long term, i.e. above the rate of inflation and in line with market conditions.

Management of the three funds

compenswiss manages the assets of the three social security funds jointly, while taking into account the specific characteristics of each fund. For each of the social insurance schemes, the Board of Directors approves each year, at the proposal of the Executive Committee, a risk budget taking into account their respective balance sheets and development prospects, as well as the annual asset allocation (AAA) and the detailed allocation by segments (DAA).

Investment portfolios

Assets are invested in the "market portfolio", which is designed to grow assets and has an estimated average potential return of 3.3% for 2024. It is governed by the DAA, is geographically and sectorally diversified, and includes long-term investments such as equities, bonds, real estate funds and gold.

Strategic and tactical allocation of investments

After setting a risk budget that is consistent with the financial and economic projections for the three social insurance schemes, the Board of Directors uses the estimated returns and the relationships between asset classes to determine the strategic allocation. The allocation includes minimum and maximum asset class weights as well as explicit foreign currency exposures. 

The implementation of the strategic allocation is framed by a risk budget, which gives the strategic allocation a passive nature. Relative risk is measured as the difference between the actual and theoretical allocations. Half of the budget allocated for 2024 has been used. This is mainly due to the anticipatory management of cash flows and the delays inherent in calls for real estate and private debt capital.

Structure of the strategic allocation

Foreign currency bonds account for 37% of the allocations, making them the most important asset class. Equities account for 28%. They offer attractive long-term returns, but are subject to higher short-term risks. Bonds and other fixed-income instruments denominated in CHF account for 17%. Real estate, which accounts for 15% of the allocation, is particularly attractive in terms of long-term growth.

To further diversify the portfolio and protect against inflation, compenswiss also invests 3% in precious metals. Since 2019, this asset class has been limited to gold.

After hedging, the foreign currency exposure amounts to 26%.