Global Custody Solutions Credit Suisse Swiss Pension Fund Index
A comparison of Swiss pension funds
Swiss Pension Fund Index
Q1 2021: +2.79%
Encouraging start to the year in Q1 2021
The Pension Fund Index rose by 5.42 points, or 2.79%, in the quarter under review; this gives a change of 2.79% since the start of the year. As of March 31, 2021, the index stood at 199.21 points, based on a starting level of 100 points at the beginning of 2000. This means the year has begun with a significant gain. February (+0.63%) was surpassed by a very strong March (+2.40%), while January (–0.24%) had a slightly negative impact on the quarterly result.
The lion’s share of positive performance in the first quarter was attributable to equities (+2.83%). Swiss equities achieved a return contribution of 0.79%, while foreign equities made a contribution of 2.04%. With a performance contribution of –0.28%, bonds (including convertible bonds) reduced the result. Real estate also turned in a positive performance at 0.31%. Alternative investments and other investments were fairly unremarkable, but nonetheless ended in positive territory. Liquidity was slightly negative (cash and FX forwards for currency hedging purposes).
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 157.10 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 2.55% above the BVG requirement in the first quarter of 2021.
The annualized return on the Credit Suisse Swiss Pension Fund Index (since January 1, 2000) amounted to 3.29% as of March 31, 2021. This contrasts with an annualized BVG mandatory minimum rate of return of 2.14%.