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One in four Swiss plans are underfunded – Swisscanto

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  • One in four Swiss plans are underfunded – Swisscanto

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SWITZERLAND - A survey of over 400 Swiss pension funds conducted by Swisscanto has found two-thirds of public schemes and 20% of private plans were underfunded at the end of 2009.

The average funding level for private pension funds increased by 7.3 percentage points to 104.3% last year and by 6 percentage points to 91.9% for public pension funds.

Swisscanto pointed out that the recovery of funding levels was mainly thanks to a recovery in the equity markets.

The asset manager calculated an average weighted pension fund return of 9.6% for 2009, which is below the average reported by Credit Suisse and State Street. (See earlier IPE story: Swiss pension returns average 11% in 2009)

However, Swisscanto pointed out that the calculation of the return was a conservative estimate, as it was based on the 2008 year-end asset allocation with a low equity quota.

"But it can be assumed that the Pensionskassen, after having reduced [equities] in 2008, increased their equity quota again in 2009," said the asset manager.

If you have any comments you would like to add to this or any other story, contact Julie Henderson on + 44 (0)20 7261 4602 or email


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    Asset class: Real Estate Equity Fund (non listed).
    Asset region: Europe.
    Size: Total CHF 600m, approx. CHF 100-300m per fund investment.
    Closing date: 2019-06-28.

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