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

Performance of Swiss Pension Funds on the Basis of Credit Suisse Global Custody Data as at December 31, 2016.

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%.

Credit Suisse Pension Fund Index 4th quarter 2016 PDF