Within the FCT, the assets of each Pension Fund are managed according to its specific needs, within the legal framework, and each Pension Committee has the choice of its investment strategy and partners. The Pension Committee chooses its investment strategy and its partners.
The Asset management partners shall be approved by the FCT Board of Trustees based on a recommendation from the Investment Committee.
As a rule, the asset management partners and the proposed investment profiles are reviewed periodically (every 3 to 5 years) based of an ALM study performed by a specialized expert.
Each Multi-employer and Company Pension Fund shall constitute an investment fluctuation reserve to overcome any possible negative performance of the financial markets.
The FCT accredited pension expert calculates the target amount of the reserve for each and every Pension Fund based on a probabilistic method for a 3 years-long horizon and 98% security level.
Within the FCT 1e, the Pension Committee of each Pension Fund chooses the range of investment strategies offered to the Insureds, of which one must be a low-risk strategy. The Asset management partners shall be approved by the FCT 1e Board of Trustees based on a recommendation from the Investment Committee.
|Multi-employer solutions||Company solution||Individual solution|
|Strategic asset allocation||Uniform*||Tailor-made||Tailor-made|
|Managers, banks, consultants||Uniform*||Tailor-made||Tailor-made|
Company solution (FCT): affiliated pension funds have the option of choosing investment strategies selected by the FCT or creating their own individual strategy. Regarding the implementation, the pension funds can choose funds available on the FCT fund platform in order to benefit from significant economies of scale and access funds validated by the Foundation or select their own providers (subject to validation by the FCT Foundation Board).
Individual solution (FCT 1e): the Pension Commission of each pension fund chooses the range of customised investment strategies, including a low-risk strategy offered to the insured. To do so, it can select from a range of strategies selected by the FCT 1e, create its own strategies using the FCT 1e fund platform, or design its own strategy together with the provider(s) of its choice (subject to approval by the FCT 1e Foundation Board).
Sustainable investments: Convinced that the consideration of ESG criteria can represent an additional investment opportunity for affiliated pension funds, the Boards of Trustees of the FCT and FCT 1e have developed the following guiding principles for its ESG policy in a Responsible Investment Charter : the development of an ESG investment range that fulfils the needs and expectations of the affiliated companies and their insureds to inform affiliated companies and insureds openly and transparently about the ESG options available to them in order to facilitate the consideration of these dimensions when defining their investment strategy and finally be actively engaged as an investor and promote best practice in corporate governance.