Fund of Funds Organized by the Private Sector
The Swiss future fund (“Zukunftsfonds Schweiz”) is being created. This invests over 50% of its resources in Switzerland and the rest in Europe in highly specialized venture capital funds organized by the private sector in fields with promising growth, such as energy and clean technology, new materials and material technology, nanotechnology, IT and robotics, biotechnology, and medical technology.
Highly Attractive for Pension Funds
The Swiss future fund is expected to launch in the course of 2018 with a target size of CHF 500 million and will grow its capital base in subsequent years with participation from institutional investors. The proven risk distribution of the fund of funds gives Swiss pension funds the opportunity to use long-term investments to create jobs without any pressure or increased risk and to achieve above-average returns for their policyholders.
Professionalization of the Venture Industry
The future fund proposal attracts professional and focused venture funds into Switzerland, which center on the energy and clean technology, new materials and material technology, nanotechnology, and IT and robotics sectors. This is an important step as only start-ups in the biotechnology and medical technology sectors can currently rely on an internationally competitive venture industry in Switzerland.
The Pro Zukunftsfonds Schweiz foundation is championing the Swiss future fund, whereby less than one percent of savings will be fed back into investments for the jobs of the future. The foundation is also advocating optimum framework conditions for Swiss start-ups. This includes removing fiscal obstacles for start-ups and also accounting rules which complicate venture capital investments for pension funds. It also supports efforts to promote entrepreneurial spirit among young people as well as entrepreneurial expertise.