Global Custody Solutions Credit Suisse Swiss Pension Fund Index
A comparison of Swiss pension funds
Swiss Pension Fund Index
Q2 2021: 3.30%
Q2 2021: Persistent upward trend
The Pension Fund Index rose by 6.57 points, or 3.30%, in the quarter under review; this gives a change of 6.19% since the start of the year. The index stood at 205.78 points as of June 30, 2021, having risen from a baseline of 100 at the beginning of 2000. The momentum seen in the first quarter was maintained, with April (+0.69%) and May (+0.72%) surpassed by a very strong June (+1.86%).
The lion’s share of positive performance in the second quarter was attributable to equities (+2.26%). Swiss equities achieved a return contribution of 1.24%, while foreign equities made a contribution of 1.02%. Bonds (including convertible bonds) helped improve the result, with a performance contribution of 0.11%. Real estate also turned in a distinctly positive performance at 0.68%. Liquidity, alternative investments, and other investments were fairly unremarkable, but nonetheless ended in positive territory.
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 a level of 157.49 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 3.05% above the BVG requirement in the second quarter of 2021.
The annualized return on the Credit Suisse Swiss Pension Fund Index (since January 1, 2000) amounted to 3.41% as of June 30, 2021. This contrasts with an annualized BVG mandatory minimum rate of return of 2.13%.