Unabhängige Freizügigkeitsstiftung Zürich (UFZ)

Zurich Independent Vested Benefits Foundation
Investment Regulations
Zurich Independent Vested Benefits Foundation
Table of Contents
Art. 1
Art. 2
Art. 3
Art. 4
Art. 5
Art. 6
Art. 7
Art. 8
Art. 9
Art. 10
Art. 11
Art. 12
Art. 13
Art. 14
Purpose
General information
Principles for the management of financial assets
Extended investments
Allowable extended investments
Category limitation for extended investments
Accounting principles
Choosing the financial assets/strategy changes
Monitoring legal regulations and the range of investment strategies offered
Monitoring legal regulations and the range of individual investment strategies offered
Authoritative language
Gaps in the regulations
Regulation changes
Legal validity
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Investment Regulations
Based on Art. 6 of the bylaws of the Zurich Independent Vested Benefits Foundation (“Foundation”), the Foundation Council hereby issues
the following investment regulations:
Art.
1
Purpose
3.
Diversification: The principles of risk diversification have
to be observed at all times and compliance with the same
has to be coherently established and documented. For
shares in collective capital investments, debtor risk is
deemed to be the risk of the assets underlying the collective capital investment and not the investment company
for the collective capital investment.
Art.
4 Extended investments
1.
Based on Article 50, Paragraph 4 BVV 2, the Foundation
also offers the client an extension of the permissible investments subject to compliance with Art. 5-7 of these
regulations.
2.
The requirements for extending the investment options
are established by the Foundation, respectively within the
framework of the investment products offered by the
Foundation.
3.
When extension options are exercised, the Foundation
and/or the consultant shall advise the client of the specific risks and explain the investments.
4.
The Foundation in its annual financial statements pursuant to Article 50, Paragraph 4 BVV 2 confirms compliance
with the regulations regarding security and risk distribution pursuant to Article 50, Paragraph 1-3 BVV 2.
Art.
5
These regulations define the principles that have to be
observed for the investment of vested benefit financial
assets in securities. They are reviewed at least annually
and amended if required.
Art.
2
1.
The Foundation offers:
a.
b.
c.
2.
General information
Investments in BVG-compliant investment funds
(individual funds)
Investments in investment groups of investment
Foundations
BVG-compliant asset management mandates
The client assumes sole responsibility for the performance
of its financial assets. Investments in securities may also
result in losses due to market fluctuations. Therefore, the
Foundation only recommends investments in securities for
clients with a corresponding risk profile and a medium to
long-term investment horizon.
3.
Compensation for the safekeeping and management of
the financial assets has to be transparently presented in
the vested benefits agreement and/or the application for
opening an account or custody account. The costs for additional services have to be disclosed in the fee regulations.
4.
For all investment options made available to the client,
the Foundation Council shall ensure compliance with the
investment regulations pursuant to Article 71, Paragraph
1 BVG, Article 49-58 BVV 2 and Article 19-19a FZV. Furthermore, the Foundation Council shall ensure compliance
with the investment strategies agreed with the client, and
the regular review of and compliance with the corresponding investment guidelines and ranges. Furthermore, the
Foundation shall regularly review the services of the persons/institutions entrusted with asset management and
sales.
5.
The persons and institutions entrusted with asset management have to meet the requirements of Article 48f,
Paragraph 2 BVV 2. The Foundation requests an annual
statement from the persons involved in asset management, confirming compliance with the regulations regarding integrity and loyalty of the persons responsible pursuant to Article 48f-48l BVV 2.
Art.
3
Principles for the management of financial assets
1.
Liquidity: Timely payment for the promised services must
be possible at all times.
2.
Security: The client in consultation with the Foundation
and/or the consultant chooses an investment strategy
which is based on the risk assessment and the risk profile, and corresponds to the client's risk carrying capacity
and readiness to assume risk.
Allowable extended investments
The following extended investment options are possible
subject to compliance with the principles of diversification, provided the strategy and the risk carrying capacity
of the client have been documented and recorded in writing.
1.
Money market fund investments in foreign currencies
without currency hedging:
Permitted in euros, US dollars, Japanese yen, British
pounds, Canadian dollars, Australian dollars, New Zeeland dollars, Swedish kroner and Danish kroner.
2.
Bond fund investments in foreign currencies without
currency hedging:
Permitted in euros, US dollars, Japanese yen, British
pounds, Canadian dollars, Australian dollars, New Zeeland dollars, Swedish kroner and Danish kroner.
3.
Investments in equity funds without currency hedging:
Permitted in euros, US dollars, Japanese yen, British
pounds, Canadian dollars, Australian dollars, New Zeeland dollars, Swedish kroner and Danish kroner.
4.
Investments in real estate:
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The only real estate investments permitted are collective
capital investments with calculation of the net asset value
(NAV) performed at least weekly.
5.
6
2.
However, the requested strategy change is only implemented after receipt of the written notice.
6.
Switching from the securities to the account solution is
possible at any time, and is implemented by the Foundation within a reasonable time after receiving the written
notice.
Art.
9
Category limitation for extended investments
For the individual investment categories of the extended
investment options, the following limits apply in reference
to the existing pension assets:
1.
5.
Alternative investments without funding obligation:
These include hedge funds, commodity investments and
private equity. The only alternative investments permitted
are collective capital investments with calculation of the
net asset value (NAV) performed at least monthly. Nondiversified collective capital investments (e.g. ETF Gold)
are limited to max. 5% of the invested capital.
Art.
Foundation in writing using the respective applicable
form.
Investments in diversified foreign currencies
max. 30% in US dollars and/or euros;
others max. 10%
Investments in equity funds,
similar securities and other investments
1.
A model portfolio is maintained for every investment strategy (product) and for every client. The model portfolio is reviewed by the Foundation, both in regards to compliance
with legal regulations and in regards to compatibility with
the ranges of the investment strategy, and is approved prior to implementation.
2.
Changes to the model portfolios (including the exchange of
securities) require the prior consent of the Foundation.
3.
Deposits are made in accordance with the model portfolio
and not according to the assets of the respective trust account.
4.
The need for rebalancing is examined at least quarterly,
with implementation as needed.
50%
60%
3.
Investments in real estate funds
thereof max. one-third abroad
30%
4.
Alternative investments
max. 5% per non-diversified investment
20%
Art.
7
1.
Cash and cash equivalents are recognised at the face
amount, all other investment categories at fair value.
2.
The Foundation determines the market data and NAV
providers (e.g. Telekurs, Fides, Market Map etc.) for the
portfolio valuation and BVV 2 evaluation of the vested
benefit account.
Art.
8
1.
The client has to submit the risk profile for the chosen
financial assets according to the application. If the client
wants to deviate from the suggested product and choose
a higher-risk investment, the client has to justify this in
writing.
Art.
2.
3.
4.
Accounting principles
Choosing the financial assets/strategy changes
Based on the personal risk carrying capacity of each
client, the Foundation and/or the consultant decides
whether the changes can be implemented to the extent
requested.
If a client wants to make changes to the financial assets, a
written application has to be submitted. With the consent
of the Foundation, changing the investment strategy within the scope of the securities solutions that are offered is
possible at any time. In this case the client’s personal risk
assessment, risk profile and investment strategy have to
be reviewed by the consultant and submitted to the Foundation.
Monitoring legal regulations and the range of
investment strategies offered
10 Monitoring legal regulations and the range of
individual investment strategies offered
1.
Individual investment strategies (asset allocation) are only
possible within a specified investment strategy (e.g. conservative). Here an individually adapted model portfolio
(asset allocation) is maintained for each client. The ranges
correspond to the specified investment strategy. The model
portfolio is reviewed by the Foundation, both in regards to
compliance with legal regulations and in regards to compatibility with the ranges of the investment strategy, and is
approved prior to implementation.
2.
Changes to the model portfolios (including the exchange of
securities) require the prior consent of the Foundation. Individual investment strategies have to consist either of securities that conform to the strategy or of homogenous
products (e.g. Swiss equities, foreign equities). The Foundation decides what securities are permissible.
3.
Deposits are made in accordance with the individual customer model portfolio and not according to the assets of
the respective trust account.
4.
The need for rebalancing is examined at least quarterly,
with implementation as needed.
Art.
11 Authoritative language
In case of differences between various language versions,
the German regulations are authoritative.
Art. 12
Gaps in the regulations
In regards to individual funds (BVG-compliant investment
funds), strategy changes have to be communicated to the
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Insofar as these regulations do not contain provisions for
specific circumstances, the Foundation Council shall establish a regulation according to the object of the Foundation.
Art.
13 Regulation changes
The Foundation Council can approve an amendment to
these investment regulations at any time. The respective
current version is available to the client free of charge under www.uvzh.ch or www.unabhaengigevorsorge.ch.
Art.
14 Legal validity
These regulations come into force on the founding date of
the Foundation.
Zurich, April 2014
The Foundation Council of the Zurich Independent Vested Benefits Foundation
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