Global Custody Solutions Credit Suisse Swiss Pension Fund Index
A comparison of Swiss pension funds
Credit Suisse Swiss Pension Fund Index
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|
|Foreign currency bonds||0.26%||0.26%|
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%.