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Guide

Institutional Structuring

Institutional investors structure assets through specialised vehicles that combine governance, tax status, and investment access. In Switzerland, occupational pension institutions can invest their assets jointly through investment foundations (Anlagestiftungen). As a rule, investment foundations are exempt from direct taxes and supervised by the Occupational Pension Supervisory Commission (OAK BV). Classical foundations under the Civil Code serve charitable or family purposes with their own governance. The choice of structure depends on purpose, the circle of investors, and tax treatment.

The essentials

  • Investment foundations (Anlagestiftungen) serve the joint investment and management of pension assets. Only occupational pension assets are invested; supervision lies with the OAK BV.
  • An investment foundation is exempt from direct taxes provided that its funds serve occupational pension provision permanently and exclusively; property gains remain subject to cantonal tax. The circle of investors may comprise pension institutions, other Swiss tax-exempt institutions with the same purpose, and FINMA-supervised managers of those institutions' collective investments who invest funds with the foundation exclusively for those institutions (Art. 1 ASV).
  • Classical foundations under the Civil Code pursue a purpose laid down in the deed of foundation and are generally subject to foundation supervision (family and ecclesiastical foundations excepted); charitable foundations may be tax-exempt.
  • The choice of vehicle follows purpose, the circle of investors, the desired governance, and tax treatment; pension assets and private or charitable assets follow different rule sets.

Sources: BVG Art. 53g and 64a (fedlex, DE) · DBG Art. 56 lit. e and g, Tax exemption (fedlex, DE) · StHG Art. 23, Cantonal and communal tax exemption (fedlex, DE) · ASV Art. 1, Circle of investors (fedlex, DE) · CC Art. 80, 84 and 87 (fedlex, DE)

Frequently asked questions about Institutional Structuring

An investment foundation is a foundation under the Civil Code for which pension law sets its own rules. It invests funds of tax-exempt institutions of occupational pension provision jointly and manages them in investment groups. Supervision lies with the Occupational Pension Supervisory Commission (OAK BV).
An investment foundation pools and invests only occupational pension assets. A classical foundation under the Civil Code pursues a charitable or family purpose, invests its own foundation assets, and is generally subject to foundation supervision (family and ecclesiastical foundations excepted).
Investment foundations are exempt from direct taxes provided that their funds serve occupational pension provision permanently and exclusively. For charitable foundations, letter g of Art. 56 DBG applies: it exempts profit that is dedicated exclusively and irrevocably to public or charitable purposes. Property gains remain subject to cantonal tax in both cases. The specific treatment is assessed by the competent tax authority.
Pension institutions use investment foundations for collective, supervised access to investment groups. Charitable or family purposes are served through classical foundations. The choice depends on purpose, the circle of investors, and desired governance.

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This overview is for general information purposes only and does not constitute investment, legal or tax advice. It is a simplified summary of the legal position and tax treatment.

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