Closing the gap
Swiss pension funds made no major changes in asset allocation during the past year, despite disappointing investment returns. Investors in Switzerland still invest more assets in fixed income than in equities, although the proportions are getting closer. According to estimates from consultant Graziano Lusenti, based on official data and the findings of the latest survey on pension fund investments by Robeco, Bilanz and Prevoyance Professionelle, Swiss pension funds are investing around 35% of total assets in bonds and just under 30% in equities.
Swiss bonds attract around 25% of total assets and international bonds, mainly European, around 10%.
On the equity side, pension funds are investing around 18% of total assets in domestic stocks and 10% in foreign equities, also mainly in Europe, followed by the US.
Swiss pension funds still trust real estate investments and around 15% of total assets are invested this way. However, more investors are moving away from direct property investments in favour of real estate investment funds.
Although the percentages are still low, hedge funds and private equity are becoming more important and Lusenti estimates that around 5% of total assets are invested this way.