Global Custody Solutions Credit Suisse Swiss Pension Fund Index

Credit Suisse Swiss Pension Fund Index

A comparison of Swiss pension funds 

Swiss Pension Fund Index
Q1 2020: -7.16%

Index dominated by COVID-19 in the first quarter of 2020

The Pension Fund Index fell by 13.32 points, or –7.16%, in the quarter under review; this is the first non-positive quarter since Q4 2018. As of March 31, 2020, the index stood at 172.81 points, based on a starting level of 100 points at the beginning of 2000. March (–5.49%) was the poorest month, followed by February (–2.26%) and January (+0.51%). Since records began, performance has only been weaker in Q3 2001 (–7.91%).

The lion’s share of negative performance in the first reporting quarter was attributable to equities (–5.45%). Swiss equities achieved a return contribution of –1.58%, while foreign equities made a contribution of –3.86%. Real estate also turned in a negative performance. With a contribution of –0.42%, this asset class was unable to build on the positive result of the previous quarter. Bonds (incl. convertible bonds) also weighed on the result with a performance contribution of –1.02%. Alternative investments and other investments were fairly unremarkable, but nonetheless ended in negative territory. By contrast, liquidity made a slightly positive contribution.

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 155.54 points in the reporting quarter from a baseline of 100 in January 2000. The return of the Credit Suisse Swiss Pension Fund Index is therefore –7.41% below the BVG requirement in the first quarter of 2020.

The annualized return on the Credit Suisse Swiss Pension Fund Index (since January 1, 2000) amounted to 2.74% as of March 31, 2020. This contrasts with an annualized BVG mandatory minimum rate of return of 2.21%.