On September 22, 2024, Swiss voters will decide on the reform of the reform of the Occupational Pension Scheme (BVG). The reform aims to strengthen the financing of the 2nd pillar, maintain the overall level of benefits, and improve coverage for individuals with low incomes and part-time workers.

Despite these noble goals,  Adrian Schatzmann points out that certain union and left-wing political circles are repeatedly attempting to systematically discredit the 2nd pillar, as he explains in the interview with finews.tv.

«Left-wing circles want to create a ‹people′s pension›, merging the 1st and 2nd pillars—something they can only achieve if the acceptance of the BVG is very low,» says the CEO of Asset Management Association Switzerland (AMAS). This is why discussions about this proposal often focus solely on asset management costs.

«Of course, the performance of pension funds must be right, and that needs to be scrutinized,» Schatzmann acknowledges. However, it is also crucial that pension insitutions fully utilize their risk-bearing capacity, given the current investment volume of 1.3 trillion Swiss francs.

Without Returns, there is no Asset Management

«A 0.5 percent higher return amounts to 6.5 billion francs. This easily covers the costs», emphasizes the AMA chief. Yet, achieving this requires high investment expertise.

«The 3-pillar system in Switzerland works with a strong 2nd pillar (BVG),» Schatzmann further underscores in the conversation. From this perspective, return is the lifeblood of asset management. «Without returns, there is no asset management,» Schatzmann states succinctly.

Investment Side Overlooked

Given these premises, Schatzmann is also concerned that the focus of the entire discussion often remains on technical aspects and liabilities (costs). The importance of the investment side, or asset management, is frequently forgotten. This is incorrect, Schatzmann argues,«Every third franc paid into the pension system comes from returns.»