Swiss pension funds: Too little investment in start-ups
Published
Swiss pension funds manage a vast amount of wealth, yet only a small portion of it is used for the domestic economy. Current figures show that only 0.2 percent of pension assets flow into so-called venture capital, which is risk capital for young companies.
Experts see this figure as a problem for Switzerland as a hub for innovation. Venture capital is particularly important for start-ups to develop new technologies and grow in the market. While a significantly higher proportion of pension funds is invested in young companies in other countries, Switzerland has remained very cautious in this regard so far.
Pension institutions are generally very conservative with their investments and prioritize security. The goal is to guarantee the pensions of the insured in the long term. However, critics argue that greater investment in innovative Swiss companies could not only strengthen the economy but also generate attractive returns for the pension funds in the long run.
Whether the investment strategy of Swiss pension funds will change in the future remains to be seen. The debate over how to mobilize more capital for Swiss innovation is currently being conducted intensively in professional circles. It centers on the question of how much risk is justifiable for the Swiss economy and pension security.
Sources: Bilanz
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