Global Custody Solutions Credit Suisse Swiss Pension Fund Index

Credit Suisse Swiss Pension Fund Index

A comparison of Swiss pension funds 

Credit Suisse Swiss Pension Fund Index
Q1 2019

 

Record advance for Credit Suisse Swiss Pension Fund Index in first quarter of 2019

Q1 2019: 5.49%

In the first quarter, the Pension Fund Index advanced 9.17 points, or 5.49%, to record its strongest first quarter ever. The index rose to 176.13 points as of March 31, 2019, from a baseline of 100 at the beginning of 2000. After underwhelming performance in 2018, the pension funds rapidly gained momentum to close at a record high. January (+3.05%) was a particularly positive month, although February (+1.25%) and March (+1.10%) were also encouraging – making a successful quarter perfect.

Equities accounted for the lion’s share of the positive performance in the first quarter. Swiss equities achieved a return contribution of +1.73%, while foreign equities contributed +2.20%. Bonds and real estate likewise delivered a positive performance. The contribution from bonds (total: +0.78%) and real estate (+0.72%) added to the positive overall result. Liquidity was the only exception, with a slightly negative contribution of –0.10%. Alternative investments, mortgages, and other investments had a minimal impact on the overall result.

Performance contribution (quarterly)
Credit Suisse Swiss Pension Fund Index (1.1.2019-31.3.2019)
  Q1 19 Q2 19 Q3 19 Q4 19 YTD
Liquidity -0.10%       -0.10%
CHF bonds 0.52%       0.52%
Foreign currency bonds 0.26%       0.26%
Swiss equities 1.73%       1.73%
Foreign equities 2.20%       2.20%
Alternative investments 0.11%       0.11%
Real estate 0.72%       0.72%
Mortgages 0.03%       0.03%
Other -0.02%       0.02%
Total 5.49%       5.49%

The index of the BVG mandatory minimum rate of return (1% p.a. since January 1, 2017) rose by 0.38 points (0.25%) to 154.00 points in the reporting quarter from a baseline of 100 in January 2000. The return of the Credit Suisse Swiss Pension Fund Index was therefore 5.24% above the BVG requirement in the first quarter of 2019.

The annualized return on the Credit Suisse Swiss Pension Fund Index (since January 1, 2000) amounted to 2.98% as of March 31, 2019. This contrasts with an annualized BVG mandatory minimum rate of return of 2.27%.