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Swiss pensionskassen return 3.3% in H1

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SWITZERLAND - The last three months have proven to be very positive for the 100 Swiss Pensionskassen included in Credit Suisse's index.

The index has returned 4.8% since beginning of April which amounts to a total performance of 3.3% for the first half of this year. (See earlier IPE article: Negative Q1 for Swiss pension funds

April proved to be the strongest month as investments generated a 3% for pensionskassen, while May and June only contributed 1% and 0.75% respectively, according to the latest preliminary calculations by Credit Suisse for its quarterly Pensionskassenindex.

In contrast, the BVG index compiled by private bank Pictet, which is used by many pensionskassen as a benchmark, revealed pensionskassen underperformed the CS index during the second quarter and over the last six months.

 

The BVG index - with an equity exposure of approximately 25% - achieved a return of 1.26% in June and 5.43% over the second quarter. Over the last six months the BVG index returned 4.05%.

However, the index now points towards further decline in the markets as the year-to-date performance to July 10 is at 3.38%; again lower than the performance reported for the first six months.

The index lost 9.88% last year compared with an average pensionskassen performance of -13%. (See earlier IPE story: Swiss funds hit historic returns low)

According to Credit Suisse's calculations, the average equity exposure of Swiss pensionskassen was approximately 24% at the end of March whileanother 39% was invested in bonds - over half of that in domestic bonds - and almost 19% was held in real estate.

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 julie.henderson@ipe.com

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