Pictet Group
Offering for single investor funds
Delve into the realm of single investor funds under the Swiss law and discover a world of governance strengthening, streamlined management, enhanced transparency and tax efficiency.
Legal background – Single investor funds under the Swiss law
A single investor fund under the Swiss law can be set up for institutional investors, under certain conditions, so that their assets can be managed within a single dedicated structure.
Exploring the benefits of single investor funds for Swiss pension funds
Discover the benefits of launching or restructuring your Swiss pension fund into a single investor fund under the Swiss law – a move that can materialise numerous advantages, optimising the fund’s structure and fostering operational efficiency.
Governance enhancement
At the heart of single investor funds lies governance enhancement.
Embracing such a structure under Swiss law empowers pension funds with an additional layer of protection, ensuring enhanced security for both the fund and its affiliates. Single investor funds set the stage for robust governance bodies, typical for fund structures, and foster clear allocation of roles and responsibilities, backed by regular fund-level audits that provide added transparency and assurance.
Streamlined management
This framework paves the way for streamlined management of Swiss pension funds structured in single investor funds.
Simplified asset structuring, based on investment strategies of asset classes, encourages the emergence of economies of scale. A single investor fund can be assimilated to a centralised platform that facilitates seamless management of in-house or third-party managers, and offers a solid foundation for multi-manager structures. Finally, it is a platform that allows performance optimisation and efficient risk diversification.
Transparency
The single investor fund’s regime exalts the notion of transparency.
Leveraging standardised reporting practices and clear communication channels, single investor funds provide comprehensive and accessible information to pension fund investors, regulators and other stakeholders. This enhanced transparency empowers stakeholders with additional insights they may need to make informed decisions, nurturing a climate of trust and accountability.
Tax implications
The single investor fund structure introduces some tax implications and obligations that are specific to single investor funds under Swiss law.
In fact, pension funds can optimise their tax burden through neutralisation of the stamp duty impact and application of tax treaties via transparency at fund level.
In conclusion, single investor funds under Swiss law provide structural advantages, enabling the single investor to concentrate solely on asset management and allocation. External and specialized entities ensure the safeguarding of the investor’s interests by overseeing the operationalisation of the fund’s structure, governance, supervision of delegated activities, and especially the ones of management and monitoring of relevant regulations and their evolution.
Pictet’s unique selling proposition
At Pictet, we pride ourselves in our unique position as one of the most trusted financial services brands. With a commitment to provide excellent quality of service rather than scale, we offer a range of unparalleled services that set us apart from other banks.
-
Pictet Fortress
Your financial security is our priority. Pictet maintains a rock-solid balance sheet and a secure financial infrastructure, safeguarding your assets against potential risks.
-
One-stop-shop offering
Simplifying your financial experience. Pictet offers a comprehensive one-stop-shop offering, including our in-house solutions for investment funds, our range of global custody solutions or round-the-clock access to global markets, saving you time and effort. By consolidating your pension funds’ assets with Pictet, you benefit from a streamlined process and a holistic approach to managing your assets.
-
Client servicing
Your satisfaction is our mission. At Pictet, our primary focus is to provide exceptional client service that exceeds your expectations. Our dedicated team of experienced professionals is ready to assist you with personalised advice and solutions tailored to the specific needs of Swiss pension funds. Pictet believes in building strong, long-lasting relationships with its clients, fostering trust and reliability at every step of your pension fund’s journey.
Legal background – Single investor funds under the Swiss law
In principle, a collective investment scheme governed by the Swiss law should be made up of contributions from at least two independent investors, in order to be jointly administered. However, the assets of a collective investment scheme may be constituted by a single investor – a single-investor fund – when the latter represents the interests of a large number of final beneficiaries (art. 7 para. 3 of the Swiss Federal Collective Investment Schemes Act (CISA) and art. 5 para. 3 of the Collective Investment Schemes Ordinance (CISO)).
The following investors are eligible for a single-investor fund (art. 7 para. 3 CISA):
- A pension fund (occupational pension schemes with professional treasury operations and other occupational pension institutions providing professional treasury operations),
- A public entities with professional treasury operations or,
- A supervised insurance company (insurance companies as defined in the ISA)
Single investor funds are systematically approved and supervised by the Swiss Financial Market Supervisory Authority FINMA, and are subject to an annual independent audit. In addition, they must designate several parties to be in charge of the fund's intrinsic activities, namely:
-
Fund management company
Administration and management of the fund in the interests and on behalf of the investor. The fund management company is responsible for calculating the net asset value per unit, representing investors' interests and ensuring compliance with investment guidelines at all times, as well as supervising the delegated managers.
-
Custodian bank
It is responsible for the safekeeping of the collective assets, issues and redeems fund units, and handles payment transactions.
-
Investment manager(s)
The single investor may manage (asset management) all or part of the assets in his own name, subject to the approval of the relevant authorities, or delegate management to investment managers supervised by FINMA or equivalent, or to a bank, fund management company or securities firm.
* The single investor can also act as an investment manager of a strategy upon approval by the competent authorities. The delegation of the investment management to a third-party provider is not mandatory.
In practice, for the investor in this dedicated structure, he will no longer hold direct positions in managed accounts, but units of the single investor fund. Its assets will be managed collectively within the same structure. The investor may change its allocation through subscriptions and redemptions (in cash or in kind) of fund units.