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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.

Solid Annual Balance Sheet for the Credit Suisse Swiss Pension Fund Index

Performance of Swiss Pension Funds on the Basis of Credit Suisse Global Custody Data as at December 31, 2013.

Credit Suisse Swiss Pension Fund Index

The Credit Suisse Swiss Pension Fund Index (blue line), which started with a value of 100 at the beginning of 2000, shows that 2013 was a successful investment year overall.

In the reporting quarter, the index rose by 2.16 points (1.56%) to 141.30 points as of December 31, 2013. The main contributor to the good performance in the fourth quarter was the month of October with 1.30%. November too was a good month (0.39%), while December produced a marginally negative result (-0.14%). The BVG mandatory minimum rate of return (red line) which also started with a baseline of 100 in January 2000, put on another 0.53 points (0.37%) in the reporting quarter to reach 143.66. The difference between the BVG mandatory minimum rate of return and the Credit Suisse Swiss Pension Fund Index fell sharply and stood at just 2.36 points on December 31, 2013. This means that the difference has more than halved compared with last year (2012: 7.94 points).

In 2013 the Credit Suisse Swiss Pension Fund Index rose by a total of 7.69 points (5.76%), beating the BVG target by 4.26%. This good outcome was driven primarily by equities and real estate. Bonds delivered a negative performance at the end of the year for the first time since 2009.

The annualized return of the Credit Suisse Swiss Pension Fund Index (since January 1, 2000) at the end of the year was 2.50%, compared to the annualized BVG mandatory minimum rate of return of 2.62%.

Important Information

When interpreting these figures, it must be kept in mind that the Credit Suisse Swiss Pension Fund Index is not an artificially constructed performance index but an index based on actual pension fund data. Consequently, the index is “alive,” which significantly increases its informative value regarding the current investment behavior of Swiss pension funds. On the other hand, the fact that it is constantly revised limits the comparability of data over time. The index is nevertheless an up-to-date indicator, especially as highly accurate pension fund data remains difficult to obtain.

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