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.
After a Subdued Start to the Fourth Quarter, the Credit Suisse Swiss Pension Fund Index Developed Positively to End the Year at an All-Time High
In the reporting quarter the Pension Fund Index advanced by 1.00 point (0.63%) to reach an all-time high of 159.63 points as of December 31, 2016, from a baseline of 100 at the start of 2000. After slowing in October (–0.72%) the index recovered in November (0.16%) before staging a remarkable final surge in December (1.20%).
As in the previous quarter, the bulk of the advance for the Credit Suisse Pension Fund Index was due to foreign equities (0.93%); this was followed by real estate (0.16%), Swiss equities (0.15%), alternative investments (0.13%), and others (0.02%). Swiss bonds (–0.52%), liquidity (–0.18%), foreign currency bonds (–0.03%), and mortgages (–0.02%) made negative contributions.
A look back over the year shows that with the exception of liquidity all asset classes made a positive contribution, especially foreign equities (1.59%), real estate (1.20%), and Swiss bonds (0.43%).
The BVG mandatory minimum rate of return (1.25% p. a. since January 2016) rose by 0.47 points (0.31%) to 150.59 points in the reporting quarter, likewise from a baseline of 100 at the start of 2000. The return of the Credit Suisse Swiss Pension Fund Index is therefore 0.32% above the BVG requirement in the reporting quarter.
The annualized return on the Credit Suisse Swiss Pension Fund Index (since January 1, 2000) is 2.79% as of December 31, 2016. This contrasts with an annualized BVG mandatory minimum rate of return of 2.44%.