Pension funds again post negative performance in October
Published: Thursday, Nov 9th 2023, 08:50
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The Swiss pension funds analyzed by the major bank UBS once again posted a weak performance in October. After deducting fees, the average performance amounted to -1.42 percent according to the calculations, as the bank announced on Thursday.
September had already been weak at -0.79%. Nevertheless, after ten months, the result is still positive. Since the beginning of the year, there has been an increase of 1.13 percent, UBS writes. According to UBS, the average annual return since calculations began in 2006 is 2.77 percent.
Large differences from fund to fund
The differences in the investment performance of the various funds were also large in October. The best result was achieved by a large pension fund with assets under management of over CHF 1 billion, with a performance of +0.20%. By contrast, the worst result (-3.09%) was achieved by a small pension fund with assets under management of less than CHF 300 million.
According to UBS, the reason for the overall weak performance was the weak stock markets, which continued to trend downwards. Swiss equities fell by 5.17%, while global equities fell by 3.70%. Bonds in foreign currencies (-1.35%) also performed negatively.
The bank attributes the global downward trend in both equities and bonds to the reaction to the war between Hamas and Israel, a mixed earnings season for the third quarter and ongoing concerns about interest rates potentially remaining high for longer.
©Keystone/SDA
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