Mr. Pellizzari, since April you have headed Index Solutions at Zürcher Kantonalbank (ZKB). What does the investment universe look like?

As the second-largest provider in Switzerland, our established index funds cover all traditional asset classes of a standard asset allocation. This includes a sustainable range developed in line with the self-regulatory framework of the Asset Management Association Switzerland (AMAS), under our Responsible product line. In addition, we offer sustainable equity ETFs as well as precious metals ETFs.

ZKB, as a cantonal bank, carries a guarantee from the Canton of Zurich. Does that give Swisscanto a structural advantage over private asset managers — and how is it justified?

I don't see any direct competitive advantage. Asset management is generally a balance-sheet-light business, since assets managed on behalf of clients do not appear on the asset manager's own balance sheet. The high security of Zürcher Kantonalbank therefore plays a rather subordinate role. In my view, asset managers win market share primarily through quality, good client service, and an attractive offering.

As the largest cantonal bank, ZKB has particularly representative insight into demand trends. What are you observing right now?

As the AMAS Swiss Asset Management Study 2026 illustrates for the industry as a whole, digitalization and artificial intelligence, private market investments, and the importance of scale are among the defining forces. In the index business, the trend toward passivization among institutional investors and the generational shift are working in our favor: younger investors are looking for cost-effective, digital investment solutions — and index products can be very well suited to that.

«We have been observing a comeback in certain sustainable investments since mid-2025.»

Are you thinking of exchange-traded funds (ETFs)? They are experiencing a boom in Switzerland as well.

Not exclusively. It really depends on what investors are trying to achieve. ETFs are generally passive instruments that track a market index. Those seeking to outperform the market will typically turn to actively managed funds run by professional portfolio managers, with the goal of generating the best possible return and beating the benchmark — though this generally comes with higher management fees.

And for those focused on cost?

Anyone looking for flexible, transparent, and competitively priced investment solutions will find options not only in ETFs, but also in passive index funds. Switzerland has a broad, Swiss-law-governed range of such products that has proven its worth with professional investors such as pension funds. Under the Swisscanto fund brand, for example, we offer a wide range of passive index funds. These are available to retail investors as well — across virtually all traditional asset classes and market regions, and with or without a sustainability component. Unlike ETFs, however, index funds are not tradable at any time of day; they can only be transacted once daily.

That would seem to argue in favor of ETFs?

There are pros and cons to each product type, and investors need to weigh them for themselves. Subscriptions and redemptions of Swiss funds and index funds, unlike ETFs, are exempt from Swiss stamp duty. When a Swiss-domiciled ETF is bought or sold, a securities transfer tax of 0.075 percent per party applies, as it is a Swiss security. For foreign ETFs domiciled in Ireland or Luxembourg, the rate rises to 0.15 percent per party. These costs must be weighed against any potential pricing advantage ETFs may offer over other fund types.

«As the second-largest provider in Switzerland, our established index funds cover all traditional asset classes of a standard asset allocation.»

Under the Swisscanto brand, with more than 200 billion francs in assets in index solutions, ZKB operates the second-largest offering in Switzerland. Where are you placing your growth priorities?

Swisscanto has established itself in particular in the business of cost-efficient Swiss index funds optimized for foreign withholding tax reclaim — a segment where we see further solid growth potential. With the sustainable ESGeneration equity ETFs, we have taken an important first step toward conventional asset classes and retail investors. That is a path we now intend to pursue consistently. And of course, our established range of precious metals ETFs remains a cornerstone of our offering.

The flagship of that offering, the Swisscanto Gold ETF, currently holds around 17 billion francs in assets and has benefited from market uncertainty and the run on gold. How are you capitalizing on that momentum?

With the Swisscanto Gold ETF, Zürcher Kantonalbank launched the first product of its kind in all of Europe around 20 years ago. That pioneering achievement — and the strategic acquisition of additional precious metals ETFs since then — has proven to be the right decision. The gold ETF in particular is today a proven component of the portfolios of many professional and institutional investors. But we are not resting on our laurels. We have developed the Gold Smart Sourcing & Traceable Fund, an index fund that allows institutional investors to invest in gold that has been responsibly mined and whose provenance can be verified. That instrument now opens the door to further applications.

ZKB was comparatively late to equity ETFs: in 2025, it launched the ESGeneration ETFs you mentioned. These invest in the Swiss, European, US, and global markets and are designed to meet the highest sustainability standards. How has the market received them?

We are very pleased with the start of our ESGeneration ETFs, which have grown to a total of around 380 million francs since launch, and the performance has been impressive. The ESGeneration ETF tracking the US equity market outperformed the MSCI USA in dollars by a gross 13.02 percentage points from its listing on April 2, 2025 through May 6 of that year. That is also reflected in the performance of the global equity product, which in Swiss francs and gross terms ran 9.56 percentage points ahead of the MSCI All Countries World Index since listing. Absolute performance since launch stands at 44.91 percent and 28.49 percent, respectively. These results confirm us in our distinctive approach: the ETFs are based on a proprietary sustainability methodology and invest, within major indices, in companies that can make a positive contribution to the United Nations Sustainable Development Goals (SDGs).

«Swisscanto is the fourth-fastest growing fund brand in all of Europe.»

That is a very short time frame. Are such figures even meaningful?

The track record is admittedly short, given that the ESGeneration ETFs were only launched just over a year ago. However, the backtesting of the indices we use goes further back and also shows a positive trend. For the global equity ETF, the dedicated Swisscanto index gained just under 105.4 percent from January 2021 through the end of last April — outpacing the MSCI All Countries World Index by 20.8 percentage points. It should be noted that past performance is not an indicator of future returns.

The political debate is currently moving away from sustainability and climate targets. Are sustainable investment funds still a relevant choice in that environment?

We have already been seeing a comeback in certain sustainable investments since mid-2025. The energy transition away from fossil fuels is well underway and has gained renewed urgency in the wake of the conflict in the Middle East. Physical risks such as man-made climate change have not disappeared either. We therefore remain convinced that a sustainable approach to investing can pay off. And precisely because some actors have stepped back, the theme is not overcrowded right now — which creates entry opportunities.

You sound quite optimistic. Could that have something to do with having previously led the sustainability expertise within ZKB's asset management?

I want to be clear: sustainable investment strategies are not a passing trend. Numerous studies suggest that sustainable investments deliver equal or better long-term performance than conventional ones. We apply that long-term perspective on sustainability in our asset management as well — the first sustainable Swisscanto fund was launched as far back as 1998, and Zürcher Kantonalbank's sustainability research goes back 30 years.

The first sustainable Swisscanto fund was an actively managed equity fund. Don't passive index funds and ETFs cannibalize the active range?

Swisscanto is not by chance the fourth-fastest growing fund brand in all of Europe. We recognized early on that a modern asset manager needs both an active and a passive offering. The trend toward passivization cannot be stopped. At the same time, we continue to convince our clients of the merits of our active range — and unlike many peers, we are also recording growth in that segment.

Fabio Pellizzari, 49, has been part of Zürcher Kantonalbank Asset Management since 2020. Before taking on the role of head of Index Solutions on April 1, 2026, he served as head of ESG Strategy & Development, overseeing the development and implementation of the bank's sustainability strategy across all asset classes. Prior to joining ZKB, Pellizzari spent more than twelve years in various roles at RobecoSAM and Robeco. He holds a Master of Arts in business administration from the University of Zurich, with a focus on technology and innovation management.