Punished pension funds

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04.15.2020

Pension planning » Pension funds suffered a negative performance in March. The turbulence in the financial markets, which is worried about the situation linked to the coronavirus epidemic, has weighed on the return on assets, UBS said in its monthly statement on the performance of Swiss pension funds.

After deduction of costs, the monthly performance was in the red zone, at – 5.61%. Of the 70 pension funds studied, none registered a positive performance, the bank said yesterday in a statement.

The best result (–2.67%,) was recorded by a large pension fund while the worst result (–10.74%) was recorded by a small pension fund. The performance of foreign stocks has not been as bad since the 2008 financial crisis.

The large pension funds, with more than CHF 1 billion under management, recorded a performance of – 5.08%. Their average counterparts, managing between 300 million and one billion, achieved – 5.37%, and the small institutions, managing less than 300 million francs, – 6.17%.

Among the classes assets, the worst performance came from foreign equities (–14.53%) while the more defensive Swiss equity market recovered faster after its bottom in mid-March (–5.58%) . Penalized by the leakage of liquid investments, bonds weighed on the overall result, with a performance of – 5.56% for those in foreign currencies and – 4.68% for those in francs.

On the alternative investment side, real estate was slightly negative (–1.25%). ATS / AWP

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