Global Custody Solutions Credit Suisse Swiss Pension Fund Index
A comparison of Swiss pension funds
Swiss Pension Fund Index
Q4 2020: +3.95%
YTD 2020: +4.11%
Q4 2020: Ongoing gains
The Pension Fund Index rose by 7.36 points, or 3.95%, in the quarter under review; this gives a change of 4.11% since the start of the year. As of December 31, 2020, the index stood at 193.79 points, based on a starting level of 100 points at the beginning of 2000. This means the year has ended with a significant gain. December (+1.43%) was surpassed by a very strong November (+3.73%), while October (–1.21%) had a negative impact on the quarterly result.
The lion’s share of positive performance in the fourth quarter was attributable to equities (+2.78%). Swiss equities achieved a return contribution of 0.74%, while foreign equities made a contribution of 2.04%. Bonds (including convertible bonds) helped improve the result, with a performance contribution of 0.28%. Real estate also turned in a positive performance at 0.63%. Alternative investments and other investments were fairly unremarkable, but nonetheless ended in positive territory. Liquidity was likewise slightly positive.
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 156.71 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 3.70% above the BVG requirement in the fourth quarter of 2020.
The annualized return on the Credit Suisse Swiss Pension Fund Index (since January 1, 2000) amounted to 3.20% as of December 31, 2020. This contrasts with an annualized BVG mandatory minimum rate of return of 2.15%.