Pension funds and institutional investors

Read the PDF edition (2 pages)

The pension funds of the Basel region, among them the pension funds of Roche, Novartis and the canton of Basel-Stadt, are among the largest institutional investors in the region. They manage the retirement savings of hundreds of thousands of current and former employees, and their assets amount to tens of billions of francs. They invest in Swiss and foreign bonds, shares, real estate, private equity, infrastructure and other assets, either directly or through external asset managers.¹

The pension fund of the canton of Basel-Stadt, which insures the employees of the canton, the university, the hospitals and other public institutions, is one of the largest public pension funds of Switzerland. Its funding position, its investment strategy and the pension promises it can make are recurring subjects of cantonal politics. The low interest rates of the 2010s, which reduced the returns on bonds, forced the pension funds to lower their conversion rates and their promised pensions, which affected the retirement income of their members.

The pension funds are important clients of the Basel banks and asset managers, which manage part of their assets, provide custody services and advise them on their investment strategies. They also exercise their voting rights as shareholders of Swiss and foreign companies. Since the popular initiative against rip-off salaries of 2013, Swiss pension funds have been required to vote their shares in Swiss listed companies in the interest of their members. This has made them active participants in the governance of companies, among them the pharmaceutical groups of Basel.²

Notes

On the pension funds of the Basel region (pension funds of Roche, Novartis and the canton of Basel-Stadt) and their assets, see their annual reports. To be verified. ↩
On the obligation of Swiss pension funds to exercise their voting rights in Swiss listed companies in the interest of their insured persons (Art. 71a and 71b BVG, previously the Ordinance against Excessive Compensation), see SR 831.40. To be verified. ↩

For general information only. This article does not constitute legal or tax advice, does not replace advice on an individual case and creates no lawyer-client relationship. It reflects the legal position as of August 2025.

English

Contact

Dr Alexander Ressos, TEP

Rechtsanwalt/Attorney-at-Law

I am a Swiss attorney-at-law and also admitted as a solicitor in Hong Kong and in England & Wales, with almost 25 years of experience.

Together with my multilingual team, including Chinese, Japanese, Korean, Russian, Ukrainian and French native speakers, I advise companies and their owners from around the world on the full range of banking, corporate, commercial and tax law matters in Switzerland, including international tax planning, fiduciary services, and legal family office services including immigration & relocation or real estate investments. My practice has a particular focus on clients from growth and frontier markets in Greater China, Central Asia and the Caucasus, the rest of Asia, the Middle East, Africa and Latin America, and I equally advise clients from Europe and North America. Through an affiliated Swiss trust company, we also take care of the incorporation and ongoing administration of their companies and other structures, including accounting, tax returns and corporate secretarial services, and I serve as a professional director where required. With the support of a network of first-class cooperation partners, I also implement solutions worldwide.

My approach is to act as a trusted advisor who works directly with decision-makers, on an equal footing: I start from what you want to achieve and shape every structure, contract and tax decision around your commercial goals and how it improves your after-tax return. As “lawyers who make it happen”, my team and I stay involved until your company is set up, your structure is in place and your transaction has closed, and we remain available for any follow-on work that may be required. You benefit from bespoke solutions and personal attention, and sound, friendly and practical advice. We are not the lowest-cost provider in the market, nor do we intend to be; our aim is to deliver well-founded, proper solutions and excellent value for money.

Get in touch →

Pension funds and institutional investors

Notes

Setting up or expanding in Switzerland?