The strategy focuses on generating stable income with short duration and is positioned as a complementary building block to Swiss franc-denominated bonds as well as existing mortgage and real estate allocations.
Primarily floating-rate, short-dated mortgages on income-generating properties offer attractive yields across interest rate environments while providing resilience to valuation corrections.
For Swiss pension funds, first-ranking mortgages on income-generating real estate combine the characteristics of a stable income contributor with regulatory alignment under BVV 2, qualifying as both traditional debt instruments and low-risk investments.
Persistently low interest rate policies in Switzerland continue to challenge pension funds in their search for stable income. High-quality CHF bonds offer limited return potential while remaining exposed to interest rate sensitivity and valuation risks.
At the same time, direct real estate investments and real estate foundations remain core portfolio components, but structural excess demand has compressed acquisition yields, reducing their capacity to deliver additional income.
With the implementation of the Basel III framework in January 2025, the Swiss mortgage market is undergoing structural change. Increased capital requirements are driving more selective lending practices and lower loan-to-value ratios, creating attractive opportunities for non-bank lenders.
Income-generating real estate is a well-established asset class for pension funds, focused on delivering recurring rental income rather than owner occupancy.
Mortgages secured by such assets offer:
As a result, first-ranking mortgages on income-generating real estate provide a stable and resilient income profile, suitable as a complement or partial substitute for CHF bonds and existing real estate exposures.
The open-ended investment group is tailored to the efficiency and governance requirements of Swiss pension funds:
Launch is subject to minimum capital commitments of CHF 100 million; initial commitments have already been secured.
The Swiss Mortgages investment group qualifies as:
Swiss Mortgages Investment Group
Swiss mortgage titles on real estate, buildings under building rights and building land
Evergreen / open-ended
First-rank mortgages on investment properties and for borrowers with good credit ratings
2.0% p.a. (subject to a SARON lower limit of 0.0%)
Distributions are made quarterly, with the first distribution taking place in the quarter following the first capital call
Based on the NAV at the end of the month following a capital call
Capital commitment agreement and capital call
Based on monthly NAV with payment deadline of at least 10 banking days
Capital calls made in proportion to outstanding capital commitments; outstanding amounts up to CHF 100,000 are called in full. Deadline for participating in the capital call: Last day of the month preceding the capital call
Each capital commitment has a 3-year holding period, commencing from the first capital call
CHF 0.5 million
01 Jan -31 Dec
CHF
Monthly (published within 10 working days of the end of the month) and at year-end (published after the audit)
Fixed-rate mortgages using DCF and variable-rate mortgages at nominal value
None
Payable to Patrimonium Asset Management on the basis of capital commitments, payable pro rata to capital calls.
Upon capital commitment amount.
Founding investors (i.e. participants in the first capital call)
Average 33 bps (paid by the mortgage borrower): 50% goes to the investment group and 50% to Patrimonium Asset Management
Minimum 0.5% redemption fee payable to the investment group. Percentages above 0.5% are based on the actual costs incurred by the redemptions (e.g. the need to sell mortgages on the secondary market)
Patrimonium Asset Management AG
OAK BV