The Swiss Life Investment Foundation is expanding its product range with an invest-ment solution for infrastructure, thus offering investors access to the bundled infrastructure expertise of Swiss Life Asset Managers.
The infrastructure investment groups invest via Swiss Life Asset Managers collective investment vehicles in a diversified and high-quality portfolio of infrastructure facilities located in Europe (incl. Switzerland), America and OECD countries. The portfolio focuses on infrastructure investments in the areas of renewable energy, utilities, communication, transport and social infrastructure. Particular attention is paid to stable and regular distributions from operating activities.
Advantages of infrastructure investments
Infrastructure investments offer investors an attractive risk/return profile, regular distributions and protection in the event of rising inflation. Due to the low correlation with other asset classes, infrastructure investments reduce the risks of a BVG portfolio and increase diversification. The combination of long-term and stable yields with high ongoing earnings makes this asset class particularly attractive for pension funds, especially in the current low interest rate environment. The Federal Council has approved the introduction of a 10% quota for infrastructure investments. Under certain conditions, pension funds no longer have to include infrastructure investments in the 15% quota for alternative investments as of 1 October 2020. The new investment groups meet the conditions for infrastructure investments set out in the ordinance (Art. 53, cl. 1dbis BVV 2).
In order to offer investors flexibility, the investment groups are being launched without a fixed term (“evergreen” structure). In addition, investors can choose between an investment group where at least 80% of foreign currency risks are hedged against the Swiss franc and an investment group with the euro as its reference currency.
Stephan Thaler, Managing Director of the Swiss Life Investment Foundation, says: "Thanks to this expansion of our offering, our customer base - which has grown to just under 600 investors - will be given easy, transparent and efficient access to the infrastructure expertise of Swiss Life Asset Managers."
Many years of experience in the infrastructure investment segment
By opting for these investment groups, investors will benefit from the combined infrastructure expertise of Swiss Life Asset Managers and Fontavis. Swiss Life Asset Managers has been investing in infrastructure for its insurance companies and third-party clients for many years and has a team of 35 investment specialists who manage assets of CHF 6.3 billion. Since the end of 2019, these have included the subsidiary Fontavis, a leading asset manager specialising in clean energy infrastructure.
Contributing to the sustainable development of national economies
When selecting their investments, the infrastructure investment specialists at Swiss Life Asset Managers and Fontavis take ESG criteria into account as an integral part of the investment process. By participating in the planned investment groups, investors can, among other things, contribute to making the energy supply more sustainable while also taking ESG criteria into account.