Strategic Investment Consulting for Institutional Investors Expert Advice for Sophisticated Issues

Transcription

1 Institutional Investors for Institutional Investors Expert Advice for Sophisticated Issues Investment Regulations As a core management tool, investment regulations are prescriptive. They encompass risk monitoring and the implementation of the investment philosophy, as well as reporting and controlling. Our strategic investment makes it easier for you to accurately formulate this complex document, and sets out the significant risks entailed by its implementation. This leaves you safe in the knowledge that the specific framework conditions of your pension fund are being taken into account in an appropriate manner. Key Information at a Glance Pension fund decision-makers are faced with very challenging demands: an understanding of complex financial situations, knowledge of legal requirements, and an in-depth familiarity with asset management, to name but a few. Credit Suisse Strategic Investment Consulting supports you by providing you with the professional resources needed to fulfill these highly demanding management tasks. Take advantage of our many years of experience to gain time as well as expertise. Training for Trustees Training and development are legal requirements for the Board of Trustees. We offer focused training to help you to meet your management responsibilities expertly and comprehensively. The training deals mainly with topics in the areas of employee benefits, financial market theory, and asset and liability management (ALM). In addition to individual training sessions with customized programs, Credit Suisse also conducts three-day courses and refresher courses every six months. Segregated Mandates Our training offers include individual analyses and segregated mandates. We would be happy to meet with you to discuss their content in person. You will find further details on our range of services over the following pages. Working together as partners is our central concern. Take the first step we look forward to meeting you. The Solutions at a Glance Asset and Liability Analyses Asset and liability analyses are an indispensable element of a pension fund s asset management. To be able to use the investment strategy as a management tool, you need to draw on proven specialist experience. Our asset and liability analyses help you to consider the obligations stemming from your requirements, without losing sight of the opportunities and risks presented by the financial markets. The level of detail and our processes are determined by your needs. 1/5

2 Asset and Liability Analyses Defining the investment strategy is a central task of a pension fund s Board of Trustees. This process owes its success in part to its neutral and objective approach to the subject. Credit Suisse supports you by providing asset and liability analyses, as well as professional assistance. This helps managers to make the right decisions and stand by their convictions with more confidence. When defining the investment strategy, analysis of the opportunities and risks plays an important role. Our asset and liability analysis therefore examines the current situation. The investment strategy is then constructed in light of the fund s objectives, expectations regarding its future obligations and the performance of the financial markets, as well as the risk tolerance of the Board of Trustees.This solution gives you a systematic and professionally delivered framework for a sophisticated investment strategy. The asset and liability analysis clearly identifies the correlations and conflicting objectives of a pension fund and supports you in fulfilling your legal duty of oversight. Factors to Be Analyzed Regulators/ legislation The analysis focuses on the pension fund s financial situation and risk capacity, but an investment strategy cannot be justified by risk capacity alone. A pension fund s obligations, both statutory and those specific to itself, demand minimum benefits (its risk-bearing obligation) that cannot be achieved without exposure to risk. And finally, the risk tolerance of the Board of Trustees must also be taken into account. This will be based on their knowledge and experience, but also on the current situation of the pension fund. Our Services Static and dynamic solutions are available, depending on the client s needs.the table below displays the main features of our services: Compact offers collective foundation affiliations a costeffective way to determine risk ability and provides a customized investment strategy based on this information. Classic offers a low-cost, deadline-based analysis, clearly depicting the results in the form of annotated graphs. Advanced is not only a long-term study, it also shows the impact of different medium-term financial market scenarios. For the purposes of a best-practice approach, this analysis supplies everything you need to prepare a financial plan with dynamic elements on both the asset and liability sides. Risk capacity Coverage ratio Age structure Liquidity requirement Organization/process Business development Investment strategy Risk-bearing obligation Interest requirement Contribution structure Minimum return Risk tolerance Investment goals Expectations and experience Portfolio structure Overview of the Three Analysis Options Static Static Dynamic Compact Classic Advanced Contents Individual static analysis for collective foundations Individual static analysis Individual analysis with dynamic elements Clarification of needs Questionnaire Questionnaire Personal interim review Assessment of the potential return Long-term expected return Long-term expected return Medium- and long-term return scenarios Form of the results and presentation Additional benefits 2/5

3 Investment Regulations The investment regulations are the key management tool for targeted and responsible asset management. Article 49 of the Ordinance on Occupational Retirement, Survivors and Disability Pension Plans requires the asset manager to be collectively responsible for determining the targets and principles of asset management and for monitoring their implementation. The investment regulations are also required by the regulatory authorities as evidence that this management duty is being fulfilled. Our strategic investment helps you define the framework conditions and aids you in wording your document accurately to reflect your specific situation. The central topics are risk control, implementation of the investment philosophy, and reporting and controlling. The Result of an Elaborate Process This is a widely underestimated process, necessary for formulating investment regulations.there is no point in looking for concise formulations until the risks involved in investment activity have been clarified. The investment regulations describe how the investment strategy should be implemented and set out the approach to the goals and risks. As these tasks vary depending on the pension fund, sample texts should not be used for reference. We define the following areas as the main components of investment regulations: Principles and objectives Investment process/investment organization Investment guidelines Reporting Controlling Services Advice Ongoing growth in the financial markets is forcing managers to seriously rethink their investment regulations. Attention needs to be paid to possible sources of risk and important events in the investment business. We support you in this important thought process with personal advice from specialists. Important tips often emerge in face-to-face discussions and it s a good arena in which to share knowledge and clear up any uncertainties. Wording Based on this preparatory work, our strategic investment specialists draft customized investment regulations to correspond with your requirements profile. Critical formulations and wording that require in-depth consideration are highlighted. Other subjects can be included in the document as required. The complete investment regulations include an appendix, which details the current investment strategy and the target value for the fluctuation reserve. 3/5

4 Training for Trustees Since the first amendment to the BVG came into force, basic and advanced training for trustees has been a statutory requirement (article 51 para. 6). The fact that investment options have become more flexible has also led to a reformulation of the permitted investments with the aim of increasing transparency about risk. (Article 50 BVV 2). Targeted Training Options As a trustee, you have an interesting and challenging role. In-depth knowledge of all areas of employee benefits insurance, as well as the investment area, enables you to meet your managerial responsibilities competently. Credit Suisse Strategic Investment Consulting will support you as a professional partner in these areas with a proven training program. How You Benefit Our training modules offer you a targeted opportunity to acquire the most important knowledge of employee benefits insurance and asset management. The topics listed below are carefully coordinated with each other and will be presented by experienced speakers from the team. Furthermore, the limited number of participants enables you to have a lively exchange of ideas with other trustees. Occupational Pension Funds The three-pillar concept and fundamentals of occupational pensions Funding and benefits (actuarial factors) Legal and regulatory developments Responsibility and liability Management Tasks The principles of asset management (trustee management tasks) Risk ability, risk-bearing obligation, and investment strategy (asset and liability management) Investment management and investment organization Financial Market Theory Modern portfolio theory (return, risk, diversification) Traditional investments (equities, bonds, real estate) Alternative investments (private equity, hedge funds, insurance-linked securities, commodities) Derivatives and structured products For trustees who have recently assumed this role we recommend the training cycle comprising the basic course and the consolidation course. By participating in our training sessions, you can create the basis for working competently and successfully as a trustee. Course Offerings Training Cycle Training package (comprising basic and consolidation courses) Single training day (basic course/consolidation course/focus day) So that we can address your specific needs and the participants requirements in a targeted manner, it is beneficial to meet you in advance to determine the content of the training. The training can be held at your company premises, Credit Suisse in Zurich, or another location of your choice. By organizing training for your managers at the right level and with the right content, you will ensure that they are in a position to meet their managerial responsibilities independently. Training Courses Individual training Half day (3 4 hrs) As part of an Whole day (6 7 hrs) As part of an Further Information Credit Suisse AG Uetlibergstrasse 231 credit-suisse.com/institutionals 4/5

5 Institutional Investors for Institutional Investors Services for Swiss Pension Funds Contacts If you would like to know more about the services offered by Institutional Clients, please contact the specialists at Credit Suisse. Christian Wicki, CFA Alexandra Nowak, CFA Head of Uetlibergstrasse 231 Uetlibergstrasse 231 Tel: Tel: Andreas Jaggi, CFA Agnes Nussbaumer Uetlibergstrasse 231 Uetlibergstrasse 231 Tel: Tel: If you have any general questions, please contact your local client advisor. Stephan Büchi Sandro Gschwend Christian Waser Uetlibergstrasse 231 St. Leonhardstrasse 3 Rue du Grand-Pont 6 P.O. Box 358 P.O. Box 5705 Tel: CH-9001 St. Gallen, Switzerland CH-1002 Lausanne, Switzerland stephan.buechi@credit-suisse.com Tel: Tel: Fax: Fax: sandro.gschwend@credit-suisse.com christian.waser@credit-suisse.com André Winkler Denis Gogalic Jean-Raymond Wehrli St. Albangraben 1 Schwanenplatz 8 Rue de Lausanne P.O. Box 2553 P.O. Box 2466 P.O. Box 800 CH-4002 Basel, Switzerland CH-6002 Lucerne, Switzerland CH-1211 Geneva 70, Switzerland Tel: Tel: Tel: Fax: Fax: Fax: andre.winkler@credit-suisse.com denis.gogalic@credit-suisse.com jean-raymond.wehrli@credit-suisse.com Daniel Ammon Antonio Mantarro Bundesplatz 2 Institutional Clients Region Ticino P.O. Box 5366 Uetlibergstrasse 231 CH-3011 Bern, Switzerland Tel: Tel: Fax: Fax: daniel.ammon@credit-suisse.com antonio.mantarro@credit-suisse.com SNLS This document was produced for information purposes and is for the exclusive use of the recipient. No guarantee is made regarding reliability or completeness of this document, nor will any liability be accepted for losses that may arise from its use. This document may not be distributed in the United States or given to any US persons (within the meaning of Regulation S under the US Securities Act of 1933, as amended). The same applies in any other jurisdiction except where compliant with the applicable laws. Copyright 2015 Credit Suisse Group AG and/or its affiliated companies. All rights reserved. 5/5