Especially during stock market slumps:

Advantages with dynamic risk management

Tellco’s investment strategy focuses on long-term growth

With its investment strategy and dynamic risk management, Tellco pk aims for balance; the best possible return is to be achieved with the greatest possible security. This combination does not mean maximum profit, but in difficult phases it does not mean big losses either. Especially in economically challenging times, this is very important to many clients.

What is dynamic risk management?

The maximum acceptable risk of the investment strategy is periodically assessed, the market environment is systematically evaluated at regular intervals and a cost-efficient management of the equity quota is pursued. Compared to a static risk management, the share quota can vary more strongly.

Significance for the insured

With dynamic risk management, the risk of underfunding decreases, the return is better in the event of strong and prolonged bear markets and the pension fund remains capable of acting for longer. It can also be said that the insured can sleep more peacefully.

A changing market environment calls for dynamic risk management

The market environment has changed and the requirements for the risk-oriented management and supervision of pension funds have grown. To be successful in this, a professional organisation as well as long-term and performance-oriented instruments are required. The focus is on managing the equity portion of the invested assets, as this makes the largest contribution to risk.

The performance chart clearly shows how the investment strategy behaves during stock market fluctuations. The example shows the comparison to a pension fund with a more aggressive, static investment strategy. To make the data comparable, we had to align the data with our technical interest.

Performance

Less fluctuation in the coverage ratio thanks to long-term focus

It can be seen that after 2021, a very good stock market year, the coverage ratio of the comparison fund was around 5 percentage points higher than that of Tellco pk. If the markets are at a low, the difference is even greater, but with different signs: In 2011, the comparative coverage ratio is 12.5 percentage points lower than that of Tellco pk. The long-term view shows that in strong economic times Tellco pk does not gain quite as much as the biggest winners, but in bad stock market times it incurs fewer losses.

Coverage ratio

Our conclusion

Depending on the market environment, this does not necessarily result in a better return or coverage ratio in the long term compared to static risk management; however, overall and especially in the current period, the advantages clearly outweigh the disadvantages:
Especially in turbulent times, they have the certainty that the fluctuation margin in their investments is kept within limits.

News

The right pension fund for every company

[Translate to Englisch:]

With three new offers, Tellco pk offers occupational pension plans from a single source that are flexible, efficient and secure. That way, every company can find the right pension fund solution that fits its exact needs.

At Tellco pk, the focus is on flexibility, security and high cost efficiency. Companies in every sector can choose from among three needs-oriented packages, known as compartments: PRO, PULSE and INDIVIDUA. 

The three compartments

The three compartments differ with respect to the investment strategy – from safety- to return-oriented – and the ability to freely determine the components of the pension fund solution.

  • With a 25 per cent equity component, PRO focuses on stability, with low price fluctuations and continuous yet moderate asset growth.
     
  • With PULSE, by contrast, the focus is on growth: A higher equity component of 40 per cent means more opportunities but also greater fluctuations under certain circumstances.
     
  • With INDIVIDUA, the insured company has the final say: Whether asset manager or custodian, direct investments or funds – the pension fund commission makes the determination.

While the compartments PRO and PULSE are suitable for companies of any kind, the INDIVIDUA option is a special solution for businesses with 50 or more insured employees and investment capital of at least CHF 20 million. These requirements are in place so that a customised investment vehicle makes sense. That’s why INDIVIDUA is also appropriate for company-owned foundations that would like to affiliate with a collective foundation – for instance, because regulations are becoming more and more strict, meaning higher administrative costs. With INDIVIDUA, costs are stable. In addition, existing investments, such as real estate, can be contributed to it.

An occupational pension plan that grows along with the company

The Tellco pk pension fund solution always adapts itself optimally to insured companies. If for example the staff or size of the company changes, the new needs can be better met by switching to a different compartment if necessary. At the end of each year, every affiliated company can switch from the PRO compartment to PULSE – or vice versa – at no charge. That makes it very easy to keep the occupational pension plan flexible – a big benefit in today’s fast-paced times.

Leading Swiss pension fund

Tellco pk is one of the biggest pension funds on the Swiss market. It is growing constantly and currently has 10,000 affiliated companies and 95,000 insured persons, managing a balance sheet total of approximately CHF 4.26 billion (as of the end of 2022).

The pension fund has a notably young age structure. The average age of insured women is 40.7 years and that of insured men is 40.0 years. This means that the ratio of active insured persons to pension beneficiaries is also very favourable at Tellco pk: There are 21 active insured persons for every pension beneficiary (as of the end of 2022).

Learn more about our new solutions here.

Our pension experts will be happy to advise you personally. Click here to arrange for a non-binding consultation.

The flexible pension fund
  • The right solution for every company no matter the sector
  • Compartments can be switched each year at no cost
  • Flexibility when savings premiums fall due
  • Bespoke advice, including at your location
The efficient pension fund
  • Time-optimised administration thanks to the web app iTellco
  • High rankings in pension fund comparisons in terms of low administrative costs
  • Many years of experience with high quantities of changes
  • Customer service by experts – in a variety of languages
The secure pension fund
  • Security-oriented, dynamic investment strategy
  • Future-proof actuarial assumptions
  • Stability as a result of young age structure
  • More than 20 years of pension expertise
The most important summarized
  • An occupational pension plan that grows along with the company
  • Switch between compartments once a year at no charge
  • Various return opportunities can be chosen
  • Efficient administrative costs
Information on the subject
Solutions explained simply Tellco pk – a leading Swiss pension fund

Read more about the following topics:

Occupational pension SME
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