Global Custody Solutions Credit Suisse Swiss Pension Fund Index
A comparison of Swiss pension funds
Swiss Pension Fund Index
Q3 2020: 2.07%
YTD 2020: 0.16%
Ongoing recovery in Q3 2020
The Pension Fund Index rose by 3.78 points, or 2.07%, in the quarter under review; this gives a positive performance of 0.16% since the start of the year. As of September 30, 2020, the index stood at 186.43 points, based on a starting level of 100 points at the beginning of 2000. This means the losses caused by the pandemic have now been canceled out. July (+0.76%) was surpassed by August (+1.07%), and September (+0.23%) likewise ended in positive territory.
The lion’s share of positive performance in the third quarter was attributable to equities (+1.33%). Swiss equities achieved a return contribution of 0.44%, while foreign equities made a contribution of 0.89%. Bonds (including convertible bonds) helped improve the result, with a performance contribution of 0.24%. Real estate also turned in a positive performance at 0.30%. Alternative investments and other investments were fairly unremarkable, but nonetheless ended in positive territory. Liquidity was likewise slightly positive.
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 156.32 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 1.82% above the BVG requirement in the third quarter of 2020.
The annualized return on the Credit Suisse Swiss Pension Fund Index (since January 1, 2000) amounted to 3.05% as of September 30, 2020. This contrasts with an annualized BVG mandatory minimum rate of return of 2.18%.