Global Custody Solutions Credit Suisse Swiss Pension Fund Index
A comparison of Swiss pension funds
Published quarterly, the Credit Suisse Swiss Pension Fund Index gives a representative,
up-to-date picture of second pillar (employee benefit) investment activity. Thanks to the breadth of its analysis, the index accurately reflects the behavior of pension funds that have a global custody arrangement with Credit Suisse.
Credit Suisse Swiss Pension Fund Index - Q4 2017
Credit Suisse Swiss Pension Fund Index Ends Year at All-Time High
Q4 2017: 2.09%
The Credit Suisse Swiss Pension Fund Index rose by 2.09% in the reporting quarter to closed at a new all-time high of 172.41 points at the end of December 2017, from a baseline of 100 points at the start of 2000. Following a positive development in the first three reporting quarters, the Pension Fund Index showed an impressive increase in October (+1.20%) as well as December (+0.70%) though only a slight increase of +0.14% in November.
The bulk of the positive performance in the fourth quarter was thanks to the equities asset class, with a contribution of +1.13% from foreign equities and +0.46% from Swiss equities. Real estate also developed positively at +0.37%. Foreign currency bonds contributed +0.11% to the result and CHF bonds +0.08%. The contribution from alternative investments was a modest +0.04%.
At +8.05%, the return for the year 2017 was the fourth-best annual result since the index was first measured in 2000. This result was mainly attributable to equities (foreign equities +3.45% and Swiss equities +2.79%), followed by real estate (+1.29%). The contribution from alternative investments was a subdued +0.15%. The negative annual contribution from liquidity at –0.16% is attributable to negative interest rates on cash holdings as well as losses on currency hedges. In particular, the euro’s sharp appreciation in 2017 (+9.15%) is likely to have led to higher losses on short currency forward transactions.
Only in 2003 (+9.25%), 2005 (+12.62%) and 2009 (+10.86%) did the Pension Fund Index achieve a higher annual return.