Pension funds struggle to achieve a positive return

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Pension funds struggle to achieve a positive return


A study published on Monday by UBS indicates that Swiss pension funds have posted a negative return of -0.26% since the start of the year.


Swiss pension funds generally performed well in September, but their performance over the year remains negative. (Illustrative photo)


© KEYSTONE
Swiss pension funds generally performed well in September, but their performance over the full year remains negative. (Illustrative photo)


The Swiss pension funds posted an admittedly weak but positive return in September, while the performance for the whole year remained negative.

As shown by calculations made by UBS and published on Monday, after deducting their fees, the average performance of pension funds on their financial investments hardly exceeded 0.01%. For the sixth consecutive month they have evolved on a positive note. The year-to-date returns stand at -0.26%.

Best yields in August

It was in August that the small pension funds, those with assets under management of less than 300 million francs, achieved their best returns, with a performance of 0.06%.

Medium-sized ($ 300 million to $ 1 billion) and large (over $ 1 billion in assets under management) pension funds, on the other hand, posted slightly negative returns of -0.02% and -0.03, respectively. %.

The best and the worst performances were obtained by the small pension funds, with respectively + 0.53% for the best and -0.69% for the worst.

Volatility in September

In September, a month that turned out to be very volatile, it was alternative investments that achieved the best performance. Private equity and infrastructure were the driving forces behind performance, with 2.32%, followed by hedge funds with 1.86% and real estate with 0.91%.

For their part, the returns on bonds in francs were confined to 0.75%, those on defensive Swiss equities at 0.6%, while the contribution of global equities was even negative, at -1.32%. .

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