Property Sector Financialization: The Case of Swiss Pension Funds (1992–2005)
AbstractFinancialization is a major trend in Western economies. This paper shows, on the one hand, how it changes the management criteria and, on the other hand, the limits to financialization in the property sector. Between 1992 and 2004, about 15% of Swiss pension funds’ wealth was invested in property. As far as their investment policy is concerned, pension funds have two choices. First, they can directly own, and have management responsibility for, the properties in their portfolios. Alternatively, they can buy shares in mainly Zurich-based investment vehicles. In the first case, pension funds require staff with the relevant expertise along with the knowledge of property markets. Investments have a regional focus and are assessed internally by the funds. In the second case, pension funds are merely investors and investment appraisals and comparisons are made on the basis of market criteria such as yield, diversification in relation to risk and liquidity. In this case, property investments focus solely on the country’s main urban areas.
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Bibliographic InfoPaper provided by GRET Group of Research in Territorial Economy, University of Neuchâtel in its series GRET Publications and Working Papers with number 01-10.
Length: 24 pages
Date of creation: Jan 2010
Date of revision:
Publication status: Published in European Planning Studies, January 2010, Volume 18, Issue 2, Pages 189-212
Contact details of provider:
Postal: Faubourg de l'Hôpital 27, 2000 Neuchâtel, Switzerland
Phone: +41 (0)32 718 1420
Fax: +41 (0)32 718 1421
Web page: http://www2.unine.ch/socio/
More information through EDIRC
Finance Industry; Territorial Economy; Swiss Pension Funds;
Other versions of this item:
- Thierry Theurillat & Jose Corpataux & Olivier Crevoisier, 2008. "Property Sector Financialization: The Case of Swiss Pension Funds (1992--2005)," European Planning Studies, Taylor & Francis Journals, vol. 18(2), pages 189-212, December.
- G0 - Financial Economics - - General
- G3 - Financial Economics - - Corporate Finance and Governance
- L0 - Industrial Organization - - General
- E0 - Macroeconomics and Monetary Economics - - General
- A1 - General Economics and Teaching - - General Economics
- O1 - Economic Development, Technological Change, and Growth - - Economic Development
- R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-01-03 (All new papers)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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GRET Publications and Working Papers
04-12, GRET Group of Research in Territorial Economy, University of Neuchâtel.
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