Pension funds with negative performance in October
Published: Monday, Nov 11th 2024, 10:50
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Swiss pension funds achieved a negative performance on average in October. The Swiss equities asset class in particular weighed on the returns of the pension funds.
The more than 100 pension funds analyzed by UBS achieved an average performance of -0.59 percent on pension assets under management (after deduction of fees) in the month under review, as the big bank announced on Monday.
According to UBS data, October is the second month this year in which the return is negative. With the exception of April 2024, when the pension funds generated a negative return of 0.91% on average, performance in the current year has always been in the black. Across all pension funds, the return for 2024 so far is plus 6.20 percent.
Bad month for equities
The poor performance in October was primarily at the expense of the Swiss equities investment category. Pension funds recorded a loss of 3.46% here. Meanwhile, investments in hedge funds (+2.26%) and private market investments (+1.60%) performed particularly well.
According to UBS, the performance of all pension funds ranged from -1.52% to +0.23%. Overall, smaller funds with less than CHF 300 million in assets under management (-0.66%) performed worse than funds with assets of over CHF 1 billion (-0.58%). Pension funds with between CHF 300 million and CHF 1 billion suffered the lowest losses at -0.51%.
Looking ahead, the experts at UBS expect "bouts of volatility" on the markets in the coming months. At the same time, investors should be prepared for lower interest rates. However, according to UBS, a combination of solid economic growth and interest rate cuts suggest a "supportive" environment for equities and bonds.
©Keystone/SDA
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