Swiss mortgages: a solid investment with potential for returns

When it comes to mortgages, Zurich Invest focuses on a holistic approach to portfolio management and a stable, long-term investment philosophy.

Investments in Swiss mortgages continue to offer an attractive risk-return profile for pension plans. This asset class is very important, because about 62 percent of large pension plans have mortgages in their portfolios.*

In the current interest rate environment, Swiss mortgages offer a significant yield premium over Swiss government bonds and high-grade corporate bonds without requiring investors to assume a proportionally higher level of risk (see chart).

This makes them an ideal addition to the bond portfolio of long-term investors who value stability and controlled risk.

Mortgages offer the following advantages: steady returns, high collateralization, low correlation with volatile asset classes, and thus attractive diversification. 

*Complementa Risk Check-up Study 2025

Chart: Yield premium

A line graph showing interest rates over time, labeled with different categories and years.
Source: Zurich Invest Ltd. As of 30.06.2026

However, for small and medium-sized pension plans in particular, issuing mortgages directly is a very time-consuming and complex process – from credit checks and contract drafting to ongoing monitoring. The mortgage investment group of the Zurich Investment Foundation offers an efficient solution here.

Zurich Invest: experience, stability, sustainability

A specialized team is responsible for the entire value creation chain of the mortgage asset class. Here, Zurich Invest is able to draw on the strength of Zurich Switzerland's large sales organization and use it as a highly effective sourcing channel. 

With its combination of experience, market presence and professional risk management, Zurich Invest is a strong partner for pension plans looking to strategically incorporate mortgages into their investment portfolios. 

At the same time, Zurich Invest pursues a comprehensive sustainability strategy, with the goal being to purposefully decarbonize the mortgage portfolio. Various innovative solutions are available for this purpose, such as green mortgages and a renovation calculator for mortgage holders. 

Investing in the Zurich Investment Foundation's growth-oriented mortgage investment group allows investors to combine attractive return opportunities with a measurable contribution to a more sustainable real estate landscape in Switzerland.

Learn more and get personalized advice. 

Mortgages Switzerland | Zurich Invest Ltd

All information in this article has been compiled with care and to the best of our knowledge and belief. Zurich Invest Ltd. and Zurich Investment Foundation assume no responsibility for the accuracy and completeness of the information and disclaim any liability for losses arising from the use of this information. The opinions expressed in this article are those of Zurich Invest Ltd. and Zurich Investment Foundation at the time of writing and are subject to change without notice. This article is for information purposes only and is intended solely for the recipient. This article constitutes neither a solicitation nor an invitation to make an offer, to conclude a contract or to buy or sell investment instruments and is no substitute for detailed advice or a tax review. A purchase decision must be made on the basis of the articles of association, the regulations and the investment guidelines as well as the latest annual report of the Zurich Investment Foundation. This article may not be reproduced in whole or in part without the written permission of the Zurich Investment Foundation or Zurich Invest Ltd. It is expressly not intended for persons whose nationality or domicile prohibits access to such information under the applicable legislation. Every investment involves risks, in particular fluctuations in value and income. In the case of foreign currencies, there is an additional risk that the foreign currency may lose value against the investor's reference currency. Historical performance is not an indicator of current or future performance. The performance data does not take into account any commissions and costs charged on the issue and redemption of units. The issuer and manager of the investment groups is Zurich Investment Foundation, Hagenholzstrasse 60, 8050 Zurich. The custodian bank is State Street Bank International GmbH, Munich, Zurich branch. The managing director of the Zurich Investment Foundation is Zurich Invest Ltd, Hagenholzstrasse 60, 8050 Zurich. The articles of association, regulations and investment guidelines as well as the current annual report and factsheets can be obtained free of charge from the Zurich Investment Foundation. They can also be viewed at www.zurich-anlagestiftung.ch. Only tax-exempt pension funds domiciled in Switzerland are authorised as investors in the Zurich Investment Foundation.
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