Global Custody Solutions Credit Suisse Swiss Pension Fund Index
A comparison of Swiss pension funds
Credit Suisse Swiss Pension Fund Index
Record advance for Credit Suisse Swiss Pension Fund Index in first quarter of 2019
Q1 2019: 5.49%
In the first quarter, the Pension Fund Index advanced 9.17 points, or 5.49%, to record its strongest quarter ever. The index rose to a level of 176.13 points as of March 31, 2019, from a baseline of 100 at the beginning of 2000. After a weak performance in 2018, the pension funds rapidly gained momentum to close at a record high. January (+3.05%) was a particularly positive month, although February (+1.25%) and March (+1.10%) were also encouraging – making a successful quarter perfect.
Equities accounted for the lion's share of the positive performance in the first quarter. Swiss equities achieved a return contribution of +1.73%, while foreign equities contributed +2.20%. Bonds and real estate likewise delivered a positive performance. The contribution from bonds (total +0.78%) and real estate (+0.72%) added to the positive overall result. With a slightly negative contribution (–0.10%), liquidity was the only exception. Alternative investments, mortgages, and other investments had a minimal impact on the overall result.
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.
|Performance contribution (quarterly)
|Credit Suisse Swiss Pension Fund Index (1.1.2019-31.3.2019)|
|Q1 19||Q2 19||Q3 19||Q4 19||YTD|
|Foreign currency bonds||0.26%||0.26%|
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 154.00 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 5.24% above the BVG requirement in the first quarter of 2019.
The annualized return on the Credit Suisse Swiss Pension Fund Index (since January 1, 2000) amounted to 2.98% as of March 31, 2019. This contrasts with an annualized BVG mandatory minimum rate of return of 2.27%.
The detailed evaluation of the Credit Suisse Swiss Pension Fund Index for the first quarter of 2019 is planned for publication on April 29, 2019.