In the current market, with interest rates of 0.5 percent and an expansive monetary policy, mortgages from the Zurich investment foundation offer pension plans excellent investment options with stable returns. Mortgages protect institutional investors from negative interest rates and diversify their portfolios. Now is the best time to benefit from attractive return opportunities and market developments.
In the current market situation, mortgages such as the "Mortgages Switzerland" investment group of the Zurich investment foundation offer pension plans attractive investment opportunities. In an environment characterized by an expansive monetary policy, stabilized mortgage yields, and attractive long-term investment prospects due to negative interest rate protection, interesting opportunities are opening up for a diversified and sustainable portfolio.
Low interest rates and expansive monetary policy
To counteract the ongoing risk of deflation, the Swiss National Bank (SNB) recently lowered the key interest rate to the current 0.5%. Coupled with the prospect of further reductions, this creates a favorable environment for mortgage investments. The low cost of refinancing gives institutional investors the opportunity to benefit from a higher margin between financing and mortgage interest rates.
Protection against negative interest rates
Mortgages are an effective instrument for institutional investors to hedge against the risks of negative interest rates. In an environment where traditional fixed-income investments are burdened by negative interest rates, mortgages offer investors the opportunity to achieve stable, positive returns. The Zurich investment foundation's "Mortgages Switzerland" investment group is defined by a clear strategy and long-term fixed interest rates that offer predictable returns and protection against further interest rate cuts. An in-house team of professional mortgage specialists with decades of experience in the entire value creation process manage the investments.
Stable mortgage market
The Swiss mortgage market is showing robust development. This is supported by the continued stable demand for financing. Market forecasts predict that long-term mortgage rates will remain at an attractive level despite moderate fluctuations. This stability reflects a healthy market situation, which offers institutional investors, such as pension funds, additional security.
Attractive potential for returns
Even in a low interest rate environment, mortgages provide attractive returns. In our article about income and diversification for pension funds, we show how mortgages perform, particularly in comparison with other fixed-interest investments, such as government bonds. The stable demand for Swiss franc denominated mortgages provides additional security. In the Zurich investment foundation's mortgage investment group, stable earnings potential is complemented by professional risk management. This combination is a decisive factor for institutional investors.
Now is the ideal time to invest in mortgages
Low interest rates, higher yields in comparison to government bonds, stable demand and, last but not least, protection against negative interest rates – this combination offers institutional investors ideal conditions for investing in an investment group such as Zurich investment foundation's "Mortgages Switzerland". The prospect of stable long-term returns and a sustainable investment strategy make mortgages an attractive diversification option for investors who want to combine security, returns and responsibility in their portfolio. Now is the right time to benefit from these favorable market conditions.
