Swiss pension fund AHV cashflow positive after increase in contributions

Related images

  • Swiss pension fund AHV cashflow positive after increase in contributions

SWITZERLAND - Contributions to Switzerland's first-pillar pension fund AHV rose by 3% year on year in 2011, with the scheme becoming cashflow positive for the first time in several years.

The fund, split into three separate entities with distinct risk profiles last year, recently reported an overall return of 1.2%, with fixed income returns balancing out a volatile equity market.

AHV, the CHF21.3bn (€17.7bn) social security fund, saw contributions from employee and employers increase by more than CHF1m to CHF38.3m, with the invalidity fund IV and EO, covering maternity leave payments, also seeing comparable increases.

As a result, inflows for the first time in several years exceeded benefit payments by nearly CHF400m.

IV, meanwhile, saw assets under management rise thanks to a CHF5bn one-off transfer from AHV, while outstanding value-added tax of CHF300m was not due for payment until the beginning of January and therefore not taken into account in the reporting period.

According to Swisscanto's Pensionskassen-Monitor, the average Swiss scheme only reported returns of 0.1% in 2011, with AHV and more recently Publica outperforming the index, with the country's largest pension fund returning 1.7%.

Have your say

You must sign in to make a comment


Your first step in manager selection...

IPE Quest is a manager search facility that connects institutional investors and asset managers.

  • QN-2503

    Asset class: Equities.
    Asset region: Emerging Markets.
    Size: EUR 30m.
    Closing date: 2019-01-31.

  • QN-2505

    Asset class: Real Estate Core/Core-Plus Multi-sector strategy.
    Asset region: Asia-Pacific.
    Size: $ 50m.
    Closing date: 2019-01-28.

  • QN-2506

    Asset class: Currency Overlay.
    Asset region: Global.
    Size: USD 4 bn..
    Closing date: 2019-02-11.

Begin Your Search Here