Global Custody Solutions Credit Suisse Swiss Pension Fund Index

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 - Q2 2018

 

Credit Suisse Swiss Pension Fund Index regains some ground in the second quarter

 

Q2 2018: +0.85%

In the second quarter, the Pension Fund Index rose by +0.85% to close at a level of 171.65 points at the end of June 2018, from a baseline of 100 at the beginning of 2000. After performing weakly at the beginning of 2018, the Pension Fund Index subsequently regained some ground in the second quarter. Overall performance was particularly bolstered by a significant recovery in April 2018 (+1.29%). However the positive trend reversed in May (–0.55%), though was subsequently offset by a slightly positive June (+0.12%).

Most of the positive performance in the second quarter was attributed to foreign equities with a contribution of +0.64%. Also significant was the influence of Swiss equities (+0.22%) and real estate (+0.15%). Alternative investments (+0.05%) and foreign currency bonds (+0.01%) similarly made a small positive contribution. Swiss bonds (–0.06%) and other investments (–0.03%) contributed negatively to the overall return. The negative contribution from liquidity (–0.13%) stems from negative interest on cash holdings together with gains or losses on foreign-exchange forward transactions which are assigned to liquidity.

Performance contribution (quarterly)
Credit Suisse Swiss Pension Fund Index (1.1.2018-30.6.2018)
  Q1 18 Q2 18 Q3 18 Q4 18 YTD
Liquidity -0,02% -0,13%     -0,15%
CHF bonds -0,15% -0.06%     -0,20%
Foreign currency bonds -0,05% 0,01%     -0,05%
Swiss equities -0,65% 0,22%     -0,43%
Foreign equities -0,47% 0,64%     0,16%
Alternative investments -0,01% 0,05%     0,03%
Real estate 0,03% 0,15%     0,18%
Mortgages 0,00% 0,00%     0,00%
Other -0,01% -0,03%     -0,03%
Total -1,33% 0,85%     -0,48%

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 152.86 points in the reporting quarter from a baseline of 100 in January 2000. The return of the Credit Suisse Swiss Pension Fund Index is therefore +0.60% above the BVG requirement in the second quarter of 2018.

The annualized return on the Credit Suisse Swiss Pension Fund Index (since January 1, 2000) amounted to 2.96% as of June 30, 2018. This contrasts with an annualized BVG mandatory minimum rate of return of 2.32%.

Pension funds with assets of between CHF 150 million and CHF 500 million once again achieved the highest annualized return (since January 1, 2000) as of June 30, 2018, at 3.16%.