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: 1.51%

YTD: 9.12%

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

In the quarter under review, the Pension Fund Index rose by 2.71 points, or 1.51% to record another strong quarter. As of September 30, 2019, the index stood at 182.20 points, based on a starting level of 100 points at the beginning of 2000. Following a positive first and second quarter, the Pension Fund Index showed another very pleasing performance in the third quarter. July (+0.92%) was the strongest month, although both August (+0.11%) and September (+0.47%) 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 delivered a positive performance, contributing a total of +0.50% (bonds) and +0.44% (real estate) to the good overall result. Liquidity was the only exception, with a slightly negative contribution of -0.08%. The contributions of alternative investments, mortgages, and other investments were fairly negligible, but nonetheless positive.

Performance contribution (quarterly)
Credit Suisse Swiss Pension Fund Index (1.1.2019 – 30.9.2019)
 

Q1 19

Q2 19

Q3 19

Q4 19

YTD

Liquidity

–0.10%

0.04%

–0.08%

 

–0.11%

CHF bonds

0.52%

0.38%

0.36%

 

1.27%

Foreign currency bonds

0.26%

0.07%

0.14%

 

0.52%

Swiss equities

1.73%

0.84%

0.24%

 

3.03%

Foreign equities

2.20%

0.26%

0.32%

 

2.65%

Alternative investments

0.11%

0.02%

0.07%

 

0.19%

Real estate

0.72%

0.26%

0.44%

 

1.49%

Mortgages

0.03%

0.01%

0.02%

 

0.03%

Other

0.02%

0.00%

0.00%

 

0.04%

Total

5.49%

1.91%

1.51%

 

9.12%

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, likewise from a baseline of 100 in January 2000. The return of the Credit Suisse Swiss Pension Fund Index was therefore 1.26% 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%.

The detailed evaluation of the Credit Suisse Swiss Pension Fund Index for the third quarter of 2019 is planned for publication on October 29, 2019.