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The information provided on the following pages is intended exclusively for qualified investors as defined by the investment solution in question.

To continue, you must confirm that you are a qualified investor with your registered office in Switzerland.

 

  • Definition of «qualified investor»

    Art. 10 (3) of the Swiss Federal Act on Collective Investment Schemes (CISA) defines qualified investors as:

    • financial intermediaries pursuant to the Banking Act of November 8, 1934 (BankA), the Financial Institutions Act of June 15, 2018 (FinIA), and the Collective Investment Schemes Act of June 23, 2006 (CISA);
    • insurance companies pursuant to the Insurance Supervision Act of December 17, 2004 (ISA);
    • central banks;
    • public-law entities with professional treasury departments;
    • occupational benefits institutions and institutions existing for the purpose of serving occupational benefits schemes that have professional treasury departments;
    • companies with professional treasury departments;
    • large companies within the meaning of Art. 4 (5) of the Financial Services Act (FinSA);
    • private investment structures established for high net worth private clients that have professional treasury departments; and 
    • high net worth private clients within the meaning of Art. 5 (1) and (2) FinSA who declare that they wish to be considered as professional customers.

    Details of the eligible investor base can be found in the relevant product descriptions. These can be requested from anlageloesungen@axa.ch.

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    The information provided and the content of the information available on this website have been prepared by AXA Insurance Ltd and/or with its affiliates (hereinafter referred to as “AXA”) with the greatest care and to the best of its knowledge and judgment. AXA provides no guarantee with respect to its content or completeness and rejects any liability for losses arising out of and in connection with the use of this information. This information is aimed exclusively at professional customers and qualified investors with their place of residence or registered office in Switzerland and is expressly not intended for persons who belong to a state or live or have their registered office in a state where the approval or sale of such financial products is prohibited or restricted. The circulation must be restricted accordingly. Financial products are not risk-free investments. Performance or returns achieved in the past offer no guarantee and are not indicative of future performance or returns from financial products. Any performance data provided take no account of the commissions and costs incurred when purchasing and redeeming units. The value of and the return on financial products can rise and fall and is not guaranteed. A total loss is also possible. Exchange rate fluctuations may also influence the value of financial products. AXA processes all the data available to it with the utmost care. Calculations are carried out using standard and adequate methods. AXA expressly dissociates itself from contradictory information. The information shown, including opinions and forward-looking statements, is based on the level of knowledge and the assessment at the time of its creation and can be changed at any time without prior notice. AXA assumes no liability or warranty as to the accuracy and completeness of the information provided. To the extent permissible by law, AXA does not assume any liability for any kind of damage, losses, expenses, costs, demands, or claims in connection with the content of this website. 

    The above-mentioned liability is also excluded if AXA knew or must have known of the possibility of such damage, losses, expenses, costs, demands, or claims.

    Any investments in a product should only be made after a thorough review of the current prospectus. The investment funds mentioned on this website may only be acquired on the basis of the current sales prospectus and latest annual report (or semi-annal report, if this is more recent). The prospectus, simplified prospectus, and/or key information for investors (KIID), management regulations and/or articles of incorporation as well as the annual and semi-annual reports can be obtained free of charge from AXA. Any offer, advertising, or sale must be made in strict compliance with Swiss laws. The documents available here may not be reproduced or redistributed without the written consent of AXA. 

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Investment foundation AXA Investment Foundation Mortgages Switzerland

Attractive extra return compared to Swiss government bonds
Additional diversification across the entire portfolio
Own sourcing of mortgages with a dense distribution network
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Key points at a glance
  • Swiss and risk-aware: AXA invests in Swiss mortgages with a focus on owner-occupied property.
  • Greater return, high level of diversification: The Investment Foundation AXA Occupational Benefits Mortgages Switzerland offers attractive returns with additional diversification for your overall portfolio.
  • Large volumes, substantial experience: We manage mortgage volumes in excess of CHF 11.5 billion in total and have been investing in mortgages for more than 50 years.

Investment Foundation AXA Occupational Benefits Mortgages Switzerland

The AXA Occupational Benefits Mortgages Switzerland investment group invests in accordance with AXA's risk-aware investment philosophy in mortgages secured in Switzerland. The focus is on residential real estate with a low average loan-to-value ratio. The real estate that serves as collateral is very conservatively valued relative to the market by AXA's real estate appraisers. This approach results in an approximately 25% lower lending basis and provides investors with increased security. The mortgages are issued in accordance with AXA's risk-aware corporate philosophy via its distribution network across the whole of Switzerland. AXA manages mortgage volumes in excess of CHF 11.5 billion in total and has been investing in mortgages for more than 50 years.

AXA applies a risk-aware investment philosophy, and this is reflected in the AXA Occupational Benefits Mortgages Switzerland investment group. The product features the following characteristics:

  • Focus on residential real estate (see diagram entitled "Breakdown of use")
  • Stable income
  • Broad diversification across the most attractive regions in Switzerland (see "Breakdown by region” chart)
  • Low average loan-to-value ratio
  • First-class debtors and high collateral
  • Lower duration comparable with the broadly based Swiss bond index, albeit with a higher yield to maturity
  • Tradable monthly (notice period of three months for redeeming units)

Source: AXA Occupational Benefits Mortgages Switzerland, as of 6/30/2022

What exactly is it that characterizes AXA as an asset manager?

  • The dense distribution network of more than 340 agencies throughout Switzerland guarantees a constant supply of prime mortgages.
  • AXA manages mortgages with a total volume of CHF 11.5 billion.
  • Overall, AXA manages some 12,000 mortgages.
  • It has been investing in mortgages for more than 50 years.
  • The AXA Switzerland Pension Fund also invests in AXA Occupational Benefits Swiss Real Estate

Frequently asked questions

  • Why are mortgages considered to be an attractive investment alternative?

    Swiss mortgages are being used as an attractive investment alternative that offers security comparable with CHF-denominated bonds. Viewed historically, the yield to maturity of ten-year Swiss mortgages is around one percent higher than that of ten-year Swiss government bonds. This means that investments in mortgages can yield an extra return.

    as of 6/30/2022

  • What are the opportunities and risks of investments in mortgage investment foundations?

    Opportunities

    • Attractive extra return relative to CHF-denominated bonds
    • Additional diversification across the entire portfolio
    • Security on a par with CHF-denominated bonds
    • Easy access to indirect, diversified investments
    • Under OPO2, mortgages can also be assigned to the bond component
    • Additional security through real estate pledges

    Risks

    • Liquidity (limited tradability) 
    • Corrections to real estate valuations result in lower collateral and can lead to obligations to furnish additional cover in the case of high loan-to-value ratios
  • Why have pension funds been focusing increasingly on mortgage investments?

    On the one hand, mortgages increase the level of diversification in portfolios and thus make them more stable. On the other, the period of low interest rates accelerated the shift to a preference for mortgages. Pension funds were almost forced to structure their portfolios more efficiently while interest rates remained low. The excess return of around one percentage point that mortgages offer compared with Swiss government bonds is also sure to have been a factor driving the strong demand.

  • Mortgages are not entirely comparable to bonds. What do pension funds have to bear in mind when investing in them?

    The Investment Foundation AXA Occupational Benefits Mortgages Switzerland measures mortgages at market value, just like bonds. This means that changes in interest rates can cause fluctuations in the portfolio. Duration is thus a key factor with regard to mortgages. For example, AXA Occupational Benefits Mortgages Switzerland has a shorter duration than the leading benchmarks and is therefore less sensitive to interest rates, i.e. it shows less fluctuation when interest rates change.

    Mortgages are also less liquid than bonds. Investments in the Investment Foundation AXA Occupational Benefits Mortgages Switzerland are possible monthly. Redemptions can also be made monthly, subject to three months' notice. Other factors to bear in mind include which types of property are being financed, where they are located, and how they are used. Residential property, for instance, is classed as less risky than commercial property. Loan-to-value ratios are important too. They are a means of gauging the probability of default on a mortgage and thus of calculating its risk.

  • How likely are defaults among mortgages?

    In the case of Swiss government bonds, the borrower is the Confederation. For corporate bonds, it is a company. Swiss government bonds are seen as safe because their probability of default is very low.

    When it comes to mortgages, the borrower is the individual customer. However, unlike government and corporate bonds, the loan is secured by the property it is used to finance. The mortgage lender's terms and conditions and the quality of the property are thus vitally important in terms of minimizing the risk of default.

    AXA maintains high standards of security in its mortgage lending, and these are reflected in a selective approach to accepting borrowers. For example, it only allows borrowers to withdraw occupational benefits early if they have already provided at least 20% of the purchase price from their savings as equity. AXA also finances mainly owner-occupied residential property and completely excludes, for example, luxury property, vacation homes, and industrial facilities.

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