Zurich, 7 September 2018 – UBS is extending its range of Vitainvest retirement funds for the investment of private clients' 2nd and 3rd pillar funds. As a rule, the new "UBS Vitainvest 100 World" has an equity component of 95%, up to a maximum of 100%. This makes it possible to better exploit the long-term return potential of stock markets and to grow pension assets over time. The retirement fund is suitable for people who have a long-term investment horizon and are willing to take the higher risk associated with equities.
Demographic trends and the current low interest rate market environment are creating a financing gap in the old-age and survivor's insurance (AHV) and are presenting many Swiss pension funds with major challenges. Therefore the private retirement provision is becoming even more important for investors. Low interest rates make it difficult to invest pension assets profitably. However, trends over the past decades confirm that, despite greater fluctuations in value, equities generated higher returns than other forms of investment or a savings account over an investment period of at least ten years. "UBS Vitainvest 100 World" is therefore an interesting alternative for a private retirement provision with a long investment horizon.
Retirement funds with an equity allocation of more than 50% are permitted if the pension foundation ensures that the assets of the foundation as a whole continue to be adequately diversified and if the risk that is taken is suitable for pension purposes. UBS adheres to this investment policy and thus complies with legal
requirements. Pension savers interested in this fund are advised by UBS that they need to have the risk tolerance required for investing in equities.
Unlike other funds in the UBS Vitainvest product family, the new "UBS Vitainvest 100" is only offered in the global "World" version. As a "Swiss" fund investing mainly in Swiss equities would not be diversified broadly enough, it would not meet the requirements for a pension product.
Investors can subscribe to the new "UBS Vitainvest 100 World" retirement fund at UBS from 25 October 2018.
UBS Switzerland AG