Pension Provision
05. November 2020
3 minutes

Private pension provision: What kind of pension savings make sense?

Autumn is here - time to look at private pension provision and the annual payment into pillar 3a.

The topic of "pension provision" is on everyone's lips again at this time of year. This is important, because without taking personal responsibility - i.e. building up private pension assets - there is a risk of a pension gap later on in your well-earned retirement.

But which type of pension savings makes sense?

In the long run, saving with securities pays off - the classic account solution hardly yields any more returns!

OLZ offers two risk-based sustainable strategies with an equity component of 65% and 100%:

The following chart impressively shows that investments in securities deliver a higher return in the long term than investments in the classic account solution.


The higher the equity ratio, the higher the expected return. On the other hand, higher fluctuations in value must also be expected, since there are always setbacks on the stock market, as the recent sharp market correction triggered by Corona has shown.

Two principles are therefore important:

  1. The longer the investment horizon, the more time there is to tolerate any fluctuations in value and temporary falls in value. Securities investments with a higher equity ratio make it possible to profit from their higher return potential in the long term.

  2. With securities investments, smart risk management is the key to robust results. A risk-optimised and diversified composition of the securities portfolio reduces fluctuations in value without, however, limiting the return potential.

OLZ pension funds are risk-optimised and therefore subject to lower fluctuations in value.

The OLZ investment strategy focuses on reducing the risk of fluctuations in value. Only equities and bonds with risk characteristics that reduce the overall portfolio risk (volatility) of the respective fund are selected. Compared to conventional strategies or passive ETFs, in which the risk characteristics of the individual securities do not play a role, a higher equity quota can be selected with the OLZ implementation for the same risk. The risk of the "OLZ Smart Invest 65 ESG", for example, corresponds to the indexed implementation of a Pictet BVG-40 portfolio with an equity component of 40%. The risk of the "OLZ Equity World Optimised ESG" is approx. 35% lower than that of an index fund or ETF that replicates the MSCI World Index. The following chart shows this as an example.

OLZ Vorsorgefonds vs. Index Portfolios

OLZ pension funds offer perfect risk-optimised diversification

The two OLZ pension funds "OLZ Smart Invest 65 ESG" and "OLZ Equity World Optimised ESG" also fulfil the principle of risk-optimised diversification.

"OLZ Smart Invest 65 ESG" is a mixed fund with a 65% allocation to a broadly diversified global equity portfolio, which is put together systematically and optimised according to risk characteristics. The 35% allocation to bonds consists of a balanced number of solid CHF bonds and first-class government bonds (incl. hedging of foreign currency risks), which contribute to stabilising the overall portfolio.

"OLZ Equity World Optimised ESG" invests 100% in a globally diversified equity portfolio of the developed equity markets, which is systematically and optimised according to risk characteristics.

OLZ Vorsorgefonds

OLZ also focuses on sustainability (ESG)

In all its funds, OLZ takes into account sustainability criteria from the environmental, social and good governance areas. The exclusion criteria are set in such a way that companies that violate key ESG standards cannot be selected. In the portfolio composition, preference is given to companies with a better ESG rating. This means that the average ESG rating of the fund tends to be higher than that of the benchmark index.

Are you interested in a risk-optimised pension solution? Contact our Senior Client Advisor now for independent and honest advice.

We are always happy to talk to you.

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