Handbook “Structured Products and Derivatives for Pension Funds” now available

The Swiss Structured Products Association (SSPA) publishes the handbook “Structured Products and Derivatives for Pension Funds”. The aim of the practical handbook is to improve the understanding of structured products among pension fund managers and to present the advantages and risks of structured products in a transparent manner. In a presentation complementing the book, SSPA experts outline possible solutions for current investment opportunities of pension funds.

Zurich – 13 June 2023. Sustainable investment performance is key for pension funds in a challenging market environment. Since the SSPA’s cost transparency concept was accepted by the OAK in 2019, structured products are considered cost-transparent for pension funds.

The handbook “Structured Products and Derivatives for Pension Funds” was published by the SSPA and contains contributions by Prof. Dr. Heinz Zimmermann, University of Basel, by Ülkü Cibik, Counsel at MLL Meyerlustenberger Lachenal Froriep and by the editorial team of the investor magazine “payoff”. In five chapters, readers are introduced to the framework conditions and investment policy implications as well as risk management and legal considerations for the use of structured products.

Thomas Wicki, Member of the Board of the SSPA, Department Knowledge and Education, comments: “We are convinced that structured products can expand the investment opportunities of pension funds in a targeted manner and contribute to the returns of occupational pension schemes. I am very pleased that the handbook will provide a basis for a well-founded discussion between pension fund managers and their consultants with experts on structured products in the future.”

In a complementary presentation, the applicability of structured products for pension funds is demonstrated by means of practical examples. The case studies demonstrate, among other things, how capital protection products enable participation in a commodity strategy despite a limited risk budget, or how participation products in a defensive equity strategy can generate running income based on systematically selling options.

The handbook “Structured Products and Derivatives for Pension Funds” is available for SSPA members at the following link: www.sspa.ch/en/memberarea/