Global Custody Solutions Credit Suisse Swiss Pension Fund Index
A comparison of Swiss pension funds
Swiss Pension Fund Index
Q2 2020: 5.69%
YTD 2020: –1.87%
Strong recovery in the second quarter of 2020
The Pension Fund Index rose by 9.84 points, or 5.69%, in the quarter under review; this gives a performance of –1.87% since the start of the year. As of June 30, 2020, the index stood at 182.65 points, based on a starting level of 100 points at the beginning of 2000. Since records began, performance has only been stronger in Q2 2003 (7.61%). April (+3.33%) was the strongest month, although May (+1.43%) and June (+0.84%) likewise ended in positive territory.
The lion’s share of positive performance in the second reporting quarter was attributable to equities (+4.08%). Swiss equities achieved a return contribution of 1.32%, while foreign equities made a contribution of 2.76%. Bonds (including convertible bonds) helped improve the result, with a performance contribution of 0.98%. Real estate also turned in a positive performance at 0.35%. Alternative investments and other investments were fairly unremarkable, but nonetheless ended in positive territory. Liquidity was likewise slightly positive.
The index of the BVG mandatory minimum rate of return (1% p.a. since January 1, 2017) rose by 0.39 points (0.25%) to 155.93 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 5.44% above the BVG requirement in the second quarter of 2020.
The annualized return on the Credit Suisse Swiss Pension Fund Index (since January 1, 2000) amounted to 2.98% as of June 30, 2020. This contrasts with an annualized BVG mandatory minimum rate of return of 2.19%.