Global Custody Solutions Credit Suisse Swiss Pension Fund Index

Credit Suisse Swiss Pension Fund Index

A comparison of Swiss pension funds 

Credit Suisse Swiss Pension Fund Index
Q3 2019

Q3 2019: 1.55%

YTD: 9.16%

Credit Suisse Swiss Pension Fund Index still riding high in the third quarter of 2019

The Pension Fund Index rose by 2.77 points, or 1.55%, in the quarter under review to record another strong quarter. As of September 30, 2019, the index stood at 182.27 points, based on a starting level of 100 points at the beginning of 2000. Following positive first and second quarters, the Pension Fund Index showed another very pleasing performance in the third quarter. July (+0.92%) was the strongest month, although both August (+0.13%) and September (+0.49%) likewise ended in positive territory.

The lion’s share of positive performance in the third reporting quarter was attributable to equities (+0.56%). Swiss equities achieved a return contribution of +0.24%, while foreign equities made a contribution of +0.32%. Bonds and real estate also turned in a positive performance, contributing a total of +0.52% (bonds) and +0.45% (real estate) to the good overall result.Liquidity was the only exception, with a slightly negative contribution of –0.09%. Alternative investments, mortgages, and other investments had a fairly negligible impact, but were nonetheless positive.

Credit Suisse Swiss Pension Fund Index significantly above BVG mandatory minimum rate of return

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 a level of 154.77 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 1.30% above the BVG requirement in the third quarter of 2019.

The annualized return on the Credit Suisse Swiss Pension Fund Index (since January 1, 2000) amounted to 3.08% as of September 30, 2019. This contrasts with an annualized BVG mandatory minimum rate of return of 2.24%.