Siemens Pensionskasse is for the first time investing in global infrastructure projects with a focus on renewable energy, according to the pension fund for Siemens employees in Switzerland’s 2022 financial statement.
The pension fund appointed several external asset managers in the year under review to start investing in infrastructure, although these were not publicly disclosed.
The scheme can invest up to 5% of its total assets – which stood at CHF3.45bn(€3.6bn), down from CHF4.16bn recorded in 2021 – in global infrastructure, according to its strategy.
The move follows a new investment strategy approved by the board of trustees which the scheme started implementing last year.
It has also further developed its sustainability strategy to improve the impact investment profile of its asset allocation, without giving up on returns, it said.
Its investment strategy also saw a reduction in its overall equities allocation to 16.2% from 22.5%, cash to 1.4% from 4% and bonds to 44.8% from 45.1%.
In addition to implementing a 0-5% investment band for global infrastructure, the scheme has also increased its Swiss real estate allocation from 21% to 27%, the report disclosed.
Last year the scheme returned -9.05%, against an 8.21% benchmark, with the worse performing asset classes being emerging market equities (-24.13%) and bonds denominated in foreign currency (-17.36%), while Swiss real estate was the only asset class with positive returns (5.83%), the document added.
Its funding ratio stood at 105.32% in 2022, down from 119.48% in 2021.
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