Zurich – Zürcher Kantonalbank (ZKB) has developed an endowment fund geared towards the investment needs of charitable organizations. According to ZKB, it is the first fund of its kind in Switzerland.
Zürcher Kantonalbank is launching Switzerland’s first endowment fund focused on charitable organizations and sustainability, according to a press release. The fund is geared towards the investment needs of charitable organizations. The investment strategy is based on a diversified portfolio with a balanced risk profile and takes strict sustainability criteria into account, the press release continues. The investment in equities, bonds, money market instruments and indirectly in Swiss real estate is based on the investment strategy of large charitable organizations as shown in the Swiss Philanthropy Performance Index(SwiPhix) of Zürcher Kantonalbank.
“Charitable organizations do not generally aim to maximize returns in the short term, but often invest in sustainable and long-term investment solutions,” says Hansjörg Schmidt, Head of Foundations Key Clients at ZKB.
The fund, which is governed by Swiss law, is open exclusively to charitable Swiss organizations, is tax-efficient and has a fee model specifically geared towards these investors, according to the ZKB press release.
According to its own information, the Kantonalbank is already a partner of over 1000 charitable foundations and non-profit organizations. With the newly established ZKB Philanthropy Foundation, Zürcher Kantonalbank itself supports charitable organizations with an impact for the Canton of Zurich and also offers an umbrella for all sub-foundations with their own defined charitable purpose, without the need to establish a separate foundation. ce/gba
