Swiss pension funds have bounced back to funding levels seen at the start of the year, before the disruption caused by US tariffs linked to the so-called Liberation Day.
The funding ratio of private pension funds stood at 117.5% year to date, after dipping to 115.3% in H1, returning to the end-2024 level of 117%, according to the latest Pensionskassen-Monitor by Swisscanto.
Fully and partially funded public pension funds followed a similar path, reaching 111.9% and 90%, respectively, back to last year’s levels. Partially funded public schemes proved particularly resilient during early-year market corrections, when their funding ratios fell to 84.2% in H1—the lowest since 2022, Swisscanto’s data show.
Among Switzerland’s largest schemes, BVK, the CHF43bn (€44bn) pension fund for employees of the canton of Zurich, has seen its funding ratio rise to 112% in 2025, up from 109.3% at end-2024.
The CHF30bn multi-employer Asga Pensionskasse progressed from 118.04% in H1 to 120.61% by the end of September.
All asset classes, except for global bonds hedged in Swiss francs, contributed to the recovery.
Investments benefited from the stock rally linked to artificial intelligence (AI), while gold and emerging market bonds also remained in demand. Concerns about an escalation of the trade crisis, recession risks, and rising inflation gradually eased, and the new US tariffs had only a moderate impact on portfolios, Swisscanto noted.
“The Federal Reserve started to cut rates, which supported the US economy and global financial markets. Further tailwinds for share prices include a weak US dollar, and robust economic data,” the firm added.
Precious metals, particularly gold, reached new all-time highs, and emerging market bonds benefited from historically high real yields and a weak US dollar. Swiss government bonds, however, showed negative yields for maturities of up to five years.
In this environment, the asset-weighted return of Swiss pension funds averaged 2% year to date. Strong stock market performance and a resilient Swiss real estate market have further bolstered pension fund reserves.
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