A share is a unit of equity ownership. As a shareholder, compenswiss holds part of the capital of a company and is entitled to both a proportion of the company’s profits (dividends) and a voting right on decisions taken by the general meeting of shareholders.
Equities account for 26% of compenswiss’ investment strategy.
Bonds are debt instruments issued by companies or public entities (states, local authorities) to finance business transactions, investments, projects and other activities. By holding a bond, compenswiss is entitled to repayment of the bond at maturity and to the payment of a pre-agreed interest (the coupon).
Bonds account for 53% of compenswiss’ investment strategy, which is the largest part of its investment portfolio.
compenswiss invests indirectly through investment funds in residential and commercial real estate both in Switzerland and abroad.
Real estate represents 13% of compenswiss’ investment strategy. This asset class contributes to the diversification of the portfolio, but its weight remains constrained by liquidity considerations.
Loans to municipalities/cantons
compenswiss grants loans to cantons and municipalities as well as to certain Swiss public law institutions. In addition to repayment of the loan at maturity, compenswiss receives a pre-agreed interest rate. Unlike bonds, there is no organised market for loans. Loans are entered into on an over-the-counter market, which by definition is less liquid.
Loans represent 5% of compenswiss’ investment strategy.
Gold is often considered a safe asset. The value of this investment tends to move differently from that of other asset classes, making it a good hedge in the event of an economic slowdown or financial crisis.
Gold accounts for 3% of compenswiss’ investment strategy. The institution holds only physical gold deposited in Switzerland.