75+
Years of experience
An established provider with a proven track record in mortgage expertise
4,3 bn.
Mortgage assets under management
in Swiss francs
in Swiss francs
Invest like Zurich: invest in mortgages like an insurance company and access Zurich's network
18+
Specialists
Our dedicated mortgage team with local expertise covers the entire value chain.
ZAST Mortgages Switzerland in detail
Find out more about the numerous advantages you receive with ZAST Mortgages Switzerland, various details about the product portfolio and why investing with us is particularly advantageous.
Your advantages with ZAST Mortgages Switzerland
For more return
- Compared to traditional bonds, mortgage investments often offer higher returns with a conservative risk profile due to the illiquidity premium.
For reduced risk and high diversification
- High security thanks to low average loan-to-value ratio in the portfolio
- Broadly diversified portfolio by region, property type and maturity, with a focus on owner-occupied properties
- Low default risk due to mortgage collateral exclusively in Swiss real estate and our proven process framework
To protect against negative interest rates
- Protection against negative interest rates thanks to the structural lower limit of mortgage interest rates
- Mortgage interest rates remain positive even with negative interest rates and therefore offer robust negative interest rate protection
Zurich Invest Ltd with proven know-how
- Proven track record: successfully investing in mortgages for over 75 years.
- Invest like Zurich: 4,3 billion Swiss francs in total mortgage assets under management. Investing in mortgages like an insurance company and unique access to the Zurich network
- Dedicated mortgage team: entire value chain such as sourcing, servicing and recovery from a single source
Regions: Guidelines for portfolio construction and current allocation
| Guidelines: regions | Min. | Max. |
| Zurich, East Switzerland, Central Switzerland | 35% | 55% |
| Northwest Switzerland, Bern | 10% | 20% |
| South Switzerland | 0% | 10% |
| West Switzerland incl. Valais | 40% | 50% |
Find out more about the current allocation and follow the performance here.
Property type: Guidelines for portfolio construction and current allocation
| Guidelines: property type | Min. | Max. |
| Residential | 80% | 100% |
| Commercial | 0% | 10% |
| Mixed | 0% | 10% |
High level of safety thanks to strict specifications
- Yield-producing properties as single-family homes or apartments with proven intrinsic value
- Good resale opportunities (e.g. due to location, condition or market)
Find out more about the current allocation and follow the performance here.
Lending: Guidelines for portfolio construction and current allocation
| Guidelines: lending limits | Estimated market value |
|
|
80% |
| Individual commercial and mixed-use properties | 66,7% |
Find out more about the current allocation and follow the performance here.
Zurich Invest Ltd Mortgages: excellence through experience and expertise
Over 75 years of experience in granting and managing mortgages
- Zurich Insurance Company Ltd and Zurich Invest Ltd as proven partners
- Proven know-how and testimony to long-term expertise
Specialized mortgage team offers the entire value chain from a single source
- 18+ dedicated individuals manage the approximately 7’000 mortgages in six portfolios.
- Risks are continuously monitored by our investment managers in a systematic and disciplined investment process.
- Our specialists in Zurich and Lausanne cover all Swiss language regions.
Established partnerships and distribution platforms
- Access to the Zurich distribution network with over 1’500 sales representatives at 140 locations in Switzerland
- Open distribution structure allows collaboration with mortgage platforms and independent brokers, in addition to the Zurich distribution network
- Possibility of additional volume management through portfolio transfers and purchases or sales
Our investment philosophy and process
Solid craftsmanship leads to added value for customers. The main focus of our mortgage investment group is on security and optimised returns.
Residential mortgages
- Long-term investment horizon with a focus on financing owner-occupied and as-new properties
Diligent examination
- A careful analysis of the borrower's creditworthiness with a focus on loan-to-value and affordability ensures interest payments.
Proven investment approach
- We have been using the same investment approach for Zurich Insurance Company Ltd and the management of client assets for many years. Controlling the entire value chain is central to the investment return.
Investing sustainably: our engagement principles
Net zero by 2050
Our customers' equity, bond and real estate portfolios are to become emission-free by 2050. The targets for other asset classes will follow.
- Clear objective
- Pursuing a climate-positive economy
Exclusions on three levels
With our exclusion approach, we identify issuers and companies that do not meet our requirements and create transparency in terms of compliance with ESG criteria in our investments.
- International standards
- Climate
- Ethics
Advancing together
By sharing and participating in working groups of key networks and initiatives, we can implement our sustainability strategy even more effectively and actively contribute to identifying and addressing ESG risks more efficiently.
- Influence through the Zurich Group
- Participation of Zurich Invest Ltd in networks
Key data
| Name | Zurich Investment Foundation Mortgages Switzerland |
| Legal structure | Investment foundation under Swiss law |
|
Investor group |
Pension funds domiciled in Switzerland |
| Currency | Swiss francs |
| Liquidity | Subscription monthly, returns quarterly with a 5-month registration period |
| Minimum amount | 1 million Swiss francs |
| Output spread | 0,25% |
| Withdrawal spread | 0,25% |
| Management fees (TER) p.a. | 0,25% (0,27%) |
| Performance fee | None |
Data at December 31, 2024
All documents
Your investments in the best hands
Our systematic and disciplined investment process guarantees a high level of security and optimal return thanks to standardization.
Would you like to learn more about our investment process?
Reach your investment goal with Swiss mortgages
Find out about the Swiss mortgage asset class, why an investment is particularly worthwhile and what pension funds should consider when investing in mortgages.
Why are mortgage investments becoming increasingly more significant?
The persistently low level of interest rates increases the attractiveness of mortgage investments, as they can often offer a higher risk-adjusted return compared to other fixed-interest investments. As opposed to the returns of traditional bonds, mortgage loans offer an attractive investment alternative with positive returns and a conservative risk profile. Read more here why this is the case.
How does an investment in mortgages through our investment foundation work?
The Zurich Investment Foundation offers pension funds the opportunity to invest in a carefully diversified portfolio of Swiss mortgages that generates stable and attractive returns. The capital is invested in various Swiss mortgages, with the aim of maximizing returns and minimizing risks through professional risk management and continuous monitoring.
Income is mainly generated from interest payments from borrowers. After deducting administrative costs, any income and capital gains are reinvested. Trust in our expertise and let your money work for you in a growth-oriented environment.
What do pension funds need to consider when investing in mortgages?
- Attractive interest rate: mortgages offer a more attractive interest rate than government bonds and thus help to stabilize the earnings base.
- Duration: pension funds should ensure that the overall portfolio duration matches their investment objectives and consider the impact of adding mortgage investments on their overall portfolio duration.
- Illiquidity: as mortgage investments are less liquid, pension funds should ensure that their short-term liquidity needs are covered by other investments in order to be able to meet their obligations at all times.
- Broad diversification: a spread across different regions and property types in Switzerland reduces cluster risks and strengthens the resilience of the portfolio.
- Strong governance: a transparent track record and proven management as a solid basis for long-term and sustainable investments.
Our milestones for your success
We have been profitable and reliable in the market for over 75 years and currently manage a portfolio of over 4,3 billion Swiss francs.
1950
First mortgage lending
The first mortgages were granted by Zurich Insurance Company Ltd back in the 1950s, marking the beginning of many years of mortgage experience.
2019
Launch of ZAST Mortgages Switzerland
With this investment group, we offer pension funds easy access to the attractive asset class of mortgages on Swiss real estate. Investors invest cost-effectively in a broadly diversified portfolio.
2024
5 years ZAST Mortgages Switzerland
Since its launch in November 2019, the investment group has offered a high level of security and has enjoyed great popularity thanks to the attractive returns generated.
