Extra analytical tools for Swiss pension funds

Extra analytical tools for Swiss pension funds

The Credit Suisse Pension Fund Index gives Swiss pension funds a helpful analytical tool for comparison purposes. Extra features were added to the report last year.

The Credit Suisse Pension Fund Index (CS PFI) has established itself as a sought-after and widely cited report for benchmarking purposes. Since it was launched over 20 years ago, it has been continuously upgraded to offer Swiss pension funds even more specific analytical tools:

  • Pension funds have benefited from a monthly update in addition to the quarterly in-depth report since 2022.
  • The number of clients included in the analysis has increased by more than 30% in the last 12 months. The inclusion of additional pension funds significantly increases the informative value of the CS PFI.
  • The sustainability analysis shows how sustainably Swiss pension funds are investing their money by examining their equity and bond investments.

Sustainability analyses are becoming increasingly important

These updates and additional data are helping pension funds meet future challenges more effectively – not least with regard to sustainability. Interest in ESG (environmental, social, and governance) criteria has risen sharply among pension funds. What used to be a niche topic has now become mainstream.

"To comply with the latest recommendations of the Swiss Association of Pension Funds (ASIP), we have upgraded the measurement and analysis of ESG KPIs, enabling us to help our investment analytics clients implement ASIP guidelines," explains Markus Grimm, expert in investment analytics for Swiss pension funds at Credit Suisse.

Environmental factors are often the focal point of ESG. The carbon footprint, i.e. the asset allocation according to the weighted average carbon intensity category (MSCI WACI), is the particular focus here and has been incorporated into analyses of the pension fund industry since the end of 2021.

Asset allocation of pension funds

Asset allocation of pension funds by carbon intensity

Note: All sustainability analyses relate exclusively to the asset classes of equities and bonds.
Data source: MSCI, Credit Suisse

Analysis options could lead to more sustainability

Over the past year and a half, there has been a measurable trend toward higher average ESG scores. Some pension funds have been addressing ESG for some time now and have already adjusted their strategy and benchmarks, as well as made targeted reallocations. Others are only now beginning to look at this more closely.

Among other factors, the trend toward greater sustainability is likely due to the comparatively strong return-to-risk ratio of sustainable investments. "We assume that, through the possibility of measuring ESG KPIs, we are taking an important step toward sustainability in pension fund investments," says Markus Grimm.

Sustainabilty reporting (available only in German)

The sustainabilty reporting from Credit Suisse Asset Servicing provides a consolidated and up-to-date overview of your ESG investments.

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