Investment strategy
At COPRÉ, the key words with respect to investment are : Balance and diversification.
Our investment strategy aims to ensure efficient risk distribution so as to guarantee the security of the Foundation and optimise the pension conditions of our members. Our Foundation prioritises sustainable, local investments that integrate the concepts of environmental protection, social responsibility and good governance – for the benefit of our members.
Our strategy is designed to be all-round so that we can weather even the most difficult economic conditions with confidence. Our approach is based on the long term and on stability. We do not attempt to predict short-term market trends or to take advantage of these often unpredictable movements.
Our strategic allocation is thus based on three fundamental and complementary pillars. Real estate stands out for its stability and returns. Equities are a source of growth. And bonds combined with alternative investments help to absorb shocks and ensure a diversified investment strategy.
We have a clear preference for real asset type securities like equities, real estate, infrastructure and commodities. These are better able to protect the Foundation’s commitments to its members and pensioners, particularly during periods of inflation and financial restrictions, when negative interest rates are a well-known instrument.
Our equity portfolio is fully invested through funds and we do not hold any company shares directly.
The high proportion of alternative investments, close to 15% of the assets, is represented primarily by private equity, which we have been deploying since 2015 and which accounts for more than 5% of our assets under management.
Management of the Foundation's assets is handled by our Investment Committee and our CIO, who call upon external experts where necessary. With the same focus on independence and cost optimisation for our affiliated companies.
Our excellent results over the long term attest to the relevance of our approach. Not only do we generate excellent returns, but our investment strategy also stands out because of its low volatility. In terms of risk-adjusted returns, our Foundation achieves some of the best results in our industry.
Real Estate
Our Swiss real estate holdings provide a foundation for the solid and stable performance of the Foundation's portfolio.
It is composed of a considerable number of directly owned properties throughout the country. These are mainly residential rental buildings, with diversification into a few commercial or industrial properties.
The real estate portfolio is managed in close collaboration with first-class external specialists, but our Board of Trustees remains the competent decision-making body for each real estate transaction.
The sustainability of the existing building stock is ensured by a regular maintenance and development programme, which also contributes to the continuous improvement of environmental and sustainability criteria.
A comprehensive energy audit was conducted on our building stock in 2021 to accurately measure its CO2 emissions and its Heat Expenditure Index (HEI). The latter indicates how much energy a building consumes to cover its heating requirements. A renovation campaign will be deployed over the coming decades to meet the 2030 and 2050 carbon reduction targets, while ensuring the economic viability of each project.
Our real estate portfolio is conservatively valued each year in accordance with the method defined in appendix 4.1 of our Investment Regulations.
Our property investments abroad are made through diversified collective investment vehicles.
Shares
Our equity investments drive long-term asset growth. We apply the “core / satellite” principle to their allocation.
The core portfolio is made up of passive index funds, which are very efficient in terms of tracking the main markets with minimal costs.
The satellite niches provide a more active management focus that can cover other market segments and improve long-term performance.
A good diversification policy requires investment in foreign shares. These represent about half of our total investments in shares.
We do not hold securities directly, and clearly prefer diversified collective investment instruments.
Bonds and alternatives
Bonds combined with alternative investments help us absorb shocks and diversify our investment strategy.
Against a backdrop of very low interest rates, investments in bonds mainly serve as a buffer in the event of economic shocks.
We also apply here the principle of core/satellite allocation and use diversified collective investment schemes.
The core portfolio is made up of passive index funds, which are very efficient in terms of tracking key markets at minimal cost.
The satellite niches provide a more active management focus that can cover other market segments and improve long-term performance.
With this strategy, we prioritise high-quality loans that also serve as safe havens. To limit exchange rate effects on this asset class and to maintain its role as a buffer in the event of economic shocks, foreign bonds are hedged in Swiss francs.
Alternative investments further diversify our portfolio.
Their main function is to improve the risk/return profile of our overall allocation, as these investments are often not highly correlated with more traditional equity and bond assets.
They also provide an additional risk premium linked to the lack of liquidity of this type of investment.
Alternative investments are harmoniously diversified into equity-type investments, commonly known as private equity, fixed-rate investments that operate similarly to bonds, and real-world investments such as commodities and infrastructure.
