Tellco’s investment strategy focuses on long-term growth

With its investment strategy and dynamic risk management, Tellco pk aims for balance; the best possible return is to be achieved with the greatest possible security. This combination does not mean maximum profit, but in difficult phases it does not mean big losses either. Especially in economically challenging times, this is very important to many clients.

What is dynamic risk management?

The maximum acceptable risk of the investment strategy is periodically assessed, the market environment is systematically evaluated at regular intervals and a cost-efficient management of the equity quota is pursued. Compared to a static risk management, the share quota can vary more strongly.

Significance for the insured

With dynamic risk management, the risk of underfunding decreases, the return is better in the event of strong and prolonged bear markets and the pension fund remains capable of acting for longer. It can also be said that the insured can sleep more peacefully.

A changing market environment calls for dynamic risk management

The market environment has changed and the requirements for the risk-oriented management and supervision of pension funds have grown. To be successful in this, a professional organisation as well as long-term and performance-oriented instruments are required. The focus is on managing the equity portion of the invested assets, as this makes the largest contribution to risk.

The performance chart clearly shows how the investment strategy behaves during stock market fluctuations. The example shows the comparison to a pension fund with a more aggressive, static investment strategy. To make the data comparable, we had to align the data with our technical interest.

Performance

Less fluctuation in the coverage ratio thanks to long-term focus

It can be seen that after 2021, a very good stock market year, the coverage ratio of the comparison fund was around 5 percentage points higher than that of Tellco pk. If the markets are at a low, the difference is even greater, but with different signs: In 2011, the comparative coverage ratio is 12.5 percentage points lower than that of Tellco pk. The long-term view shows that in strong economic times Tellco pk does not gain quite as much as the biggest winners, but in bad stock market times it incurs fewer losses.

Coverage ratio

Our conclusion

Depending on the market environment, this does not necessarily result in a better return or coverage ratio in the long term compared to static risk management; however, overall and especially in the current period, the advantages clearly outweigh the disadvantages:
Especially in turbulent times, they have the certainty that the fluctuation margin in their investments is kept within limits.

News

When choosing a pension fund, it’s worth comparing the various options. This is demonstrated by the latest Swiss pension fund comparison conducted by the consulting firm Weibel Hess & Partner AG. Providers with semi-autonomous, flexible solutions are the ones gaining the advantage in this dynamic, competitive market. And this is why the offering from Tellco pk PRO comes out on top.

Tellco pk PRO wins the mystery shopping category

For the 18th year running, the renowned Swiss pension fund comparison appeared in the specialist business magazine Finanz und Wirtschaft as well as in the Sonntagszeitung newspaper. The consulting firm analyses various factors of the pension funds, such as capital investments, interest credited, conversion rates, financial ratios and risk and administrative costs. A practical test is also carried out, in which the consulting firm covertly requests offers for various companies and evaluates them. The impressive offering from Tellco pk PRO wins first place for the best risk and administrative premium in the mystery shopping category of the Swiss comparison.

Very low costs per capita with Tellco pk

Tellco pk is one of the leading providers in terms of low risk contributions and administrative costs. As the top collective foundation in the temporary staffing sector, Tellco pk has become very efficient at processing the huge volume of changes that need to be made to its databases. If all persons insured in 2022 are taken into account in the analysis, Tellco pk PRO achieves the second best result within the comparison: “Tellco pk PRO and … also demonstrate efficient management, with CHF 106 and … per capita respectively”, says the exclusive report in the specialist magazine Finanz und Wirtschaft as well as in the Sonntagszeitung newspaper. Investing in digitisation and efficient administrative processes while keeping the focus on personal contact with clients appears to have paid off. This approach has helped to reduce costs by 20% over the past three years.

Tellco pk’s blueprint for success: client growth and dynamic risk management

Tellco pk PRO has been pursuing a risk-optimised investment strategy for many years and has therefore shown steady, healthy growth. The fact that the strategy also fared well in 2022, a difficult investment year, demonstrates that the strategy works, particularly in challenging times. By comparison, Tellco pk achieved its second-best annual performance (YTD) of –5.8% in 2022. Compared to the YTD benchmark of –14.06% (Pictet BVG 25), this constitutes an outstanding result. Key indices and the market as a whole therefore lost more than twice as much as Tellco pk in some cases. Membership figures are also testament to Tellco pk’s success – the 8% growth observed last year is a good indication that clients are happy with the service being provided. Another factor in the semi-autonomous collective foundation’s success is its unusually young age structure, with redistribution restricted to very low levels.

It pays off to tailor solutions to individual needs

What exactly sets Tellco pk apart from its competitors? In short: many years of experience mean this pension expert truly understands the needs of its customers. That’s why Tellco pkPRO offers modern pension solutions with coherent risk tariffs that are cost-effective in terms of administrative costs.

Mystery shopping involves comparing and ranking offers. The risk and administrative cost contributions of the different providers are compared with one another. And the differences are often very significant. This proves it’s certainly worth comparing the options when choosing a pension fund.

Sustainability at Tellco pk

Have you read our new brochure about sustainability at Tellco pk yet? The primary objective of Tellco pk is to ensure that it meets its pension promise to all of its policyholders over the long term. In order for us to achieve this, a far-sighted and responsible perspective on the future is essential.

Find out more in the brochure

 

What’s new?
  • First place for Tellco pk PRO in mystery shopping
  • Efficient cost structure
  • Tellco pk with client growth
  • Tailored solutions