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. 

Credit Suisse Swiss Pension Fund Index
Q3 2018

 

Q3 2018: 0.80%

 

Credit Suisse Swiss Pension Fund Index rises again slightly in the third quarter of 2018

In the third quarter, the Pension Fund Index rose by +0.80% to close at a level of 173.03 points at the end of September 2018, from a baseline of 100 at the beginning of 2000. After performing weakly at the beginning of 2018, the Pension Fund Index rose again slightly in the third quarter. Overall performance was boosted by a positive contribution in July 2018 (+1.21%). However, the positive trend reversed in August (–0.52%), which even a slightly positive September (+0.12%) was unable to offset.

Most of the positive performance in the third reporting quarter was attributed to equities, with Swiss equities contributing 0.54% to returns and foreign equities 0.39%. Bonds, on the other hand, delivered a negative performance. With their total contribution of –0.25%, they stood in the way of a better result. Real estate, mortgages, and alternative investments had a negligible contribution. It is worth highlighting the slightly positive contribution from liquidity (+0.05%), which mainly stems from the foreignexchange forward transactions in this category.

Performance contribution (quarterly)
Credit Suisse Swiss Pension Fund Index (1.1.2018-30.09.2018)
  Q1 18 Q2 18 Q3 18 Q4 18 YTD
Liquidity -0,02% -0,13% 0,05%   -0,10%
CHF bonds -0,15% -0.06% -0,13%   -0,33%
Foreign currency bonds -0,05% 0,01% -0,12%   -0,17%
Swiss equities -0,65% 0,22% 0,54%   0,10%
Foreign equities -0,47% 0,64% 0,39%   0,55%
Alternative investments -0,01% 0,05% -0,01%   0,02%
Real estate 0,03% 0,15% 0,07%   0,25%
Mortgages 0,00% 0,00% -0,01%   -0,01%
Other -0,01% -0,03% 0,03%   0,00%
Total -1,33% 0,85% 0,80%   0,31%

The index of the BVG mandatory minimum rate of return (1% p.a. since January 1, 2017) rose by 0.38 points (0.25%) to 153.24 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 0.55% above the BVG requirement in the third quarter of 2018.

The annualized return on the Credit Suisse Swiss Pension Fund Index (since January 1, 2000) amounted to 2.97% as of September 30, 2018. This contrasts with an annualized BVG mandatory minimum rate of return of 2.30%.

Pension funds with assets of between CHF 150 million and CHF 500 million once again achieved the highest annualized return (since January 1, 2000) as of September 30, 2018, at 3.16%.