The Pension Funds Monitor is a real-time indicator of the financial position in the 2nd pillar. It provides information about the average funding ratio and the average investment performance of Swiss pension funds. The aim of the Pension Funds Monitor, besides gaining insight on performance, is to provide an indicator that can act as a key criterion for assessing the financial situation of pension institutions.
The pension institutions surveyed achieved an estimated asset-weighted return of 1.98% in the third quarter of 2020. With the exception of non-currency-hedged global bonds, all asset classes made positive contributions to returns, with commodities and global equities standing out in particular. However, these returns were not enough to close the first nine months positively (-0.83%).
The coverage ratios of Swiss pension funds continued to recover in the third quarter. After nine months, around three quarters of the coverage ratio loss suffered since the end of 2019 due to the coronavirus crisis have been made good. The development of the funding ratios (estimates) is as follows:
|Pension schemes||Funding ratios 31/12/2019* in %||Funding ratios 30/06/2020 in %||Funding ratios 30/09/2020 in %|
|Private-law funds ||113.9||109.6||111.1|
|Public-law funds, |
|Public-law funds, partial capitalisation ||82.4 ||79.4||80.7|
*Results of the Swiss Pension Funds Study 2020
You will find the complete results of the current Pension Fund Monitor as a PDF file to download under "Our publications". Publication dates 2020: January 24, April 24, July 24, October 23.
The calculations of the Pension Fund Monitor are based on data from the Swiss Pension Fund Study, which is published annually.
The funding ratios of the current year are estimated and aggregated for the individual pension plan. Changes on the liabilities side are determined using the historical target returns of the previous year. If no reliable target return can be calculated, the average of the historical target returns is used. The performance of individual asset-side balance sheet items is simulated by means of index performances without deduction of asset management costs and under the assumption that no rebalancing takes place.
The result of the aggregation is the performance of the total assets. Weighted averages are, in principle, used for the estimations at the aggregated level. The weighted and the unweighted averages are given for the performance estimate: the unweighted average is the simple mean of the performance estimates at the level of the individual pension scheme.
We recognise that a consideration of the average funding ratio alone provides only limited information. Each pension scheme must be considered based on its individual situation.
Further documents on the following topics can be found on the German and / or French versions of this page: