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 - Q1 2018

 

Credit Suisse Swiss Pension Fund Index Begins 2018 with a Negative Performance

 

Q1 2018: -1.36%

In the reporting quarter, the Pension Fund index fell by –1,36% (–2,34 points) to close at a level of 170,14 points at the end of March 2018, from a baseline of 100 at the start of 2000. After a very strong 2017 (+8,05%), the Pension Fund Index underwent a significant correction in the first three months of the reporting period. The bulk of the correction took place in February (–1,26%), while in January (–0,04%) and March (–0,07%) only slight reductions were observed.

All asset classes made a negative contribution to the return for the first quarter of 2018, with the exception of real estate and mortgages – both of which remained neutral. Equities showed the biggest fall, with Swiss equities contributing –0,65% to the return and foreign equities contributing –0,47%. CHF bonds and foreign currency bonds negatively impacted the return to the tune of –0,15% and –0,05%, respectively. The contribution from alternative investments was –0,02%.

Performance Contribution (Quarterly)

Credit Suisse Swiss Pension Fund Index (01.01.2018 –  31.03.2018)

  Q1 18 Q2 18 Q3 18 Q4 18 YTD
Liquidity
-0,02%       -0,02%
CHF bonds
-0,15%       -0,15%
Foreign currency bonds
-0,05%       -0,05%
Swiss equities
-0,65%       -0,65%
Aktien Ausland -0,47%       -0,47%
Alternative Anlagen -0,02%       -0,02%
Immobilien 0,00%       0,00%
Hypotheken 0,00%       0,00%
Rest -0,01%       -0,01%
Total -1,36%       -1,36%

The index of the BVG mandatory minimum rate of return (1% p.a. since January 2017) rose by 0,38 points (0.25%) to 152,48 points in the reporting quarter, likewise from a baseline of 100 in January 2000. The return of the Credit Suisse Swiss Pension Fund Index is therefore –1,61% below the BVG requirement in the first quarter of 2018.

The annualized return on the Credit Suisse Swiss Pension Fund Index (since January 1, 2000) was 2,95% as of March 31, 2018. This contrasts with an annualized BVG mandatory minimum rate of return of 2,34%.

The detailed evaluation of the Credit Suisse Swiss Pension Fund Index for the first quarter of 2018 is planned for publication on May 3, 2018.