The turbulence in the markets during August impacted the performance of Swiss pension funds. Other asset classes also contributed to downward pressure.
According to UBS, Swiss pension funds achieved an average performance of 0.11 percent in August, after fees. The range among the observed funds was between -0.49 percent and 0.75 percent, as stated in a study published on Monday.
Since the beginning of the year, the return stands at 6.12 percent, with an annualized return of 3.15 percent since the barometer was launched in 2006.
In August, larger pension funds, managing assets over 1 billion Swiss francs, posted a median performance of 0.15 percent, outperforming smaller funds (up to 300 million francs) which returned 0.11 percent.
Recovery After Massive Sell-Off
A mixed picture emerged across asset classes. «Global equity markets started August with a massive sell-off, but recovered to close the month at a record high,» UBS noted.
Swiss equities (+0.83 percent) and Swiss franc bonds (+0.33 percent) performed best. Real estate investments were mixed, with direct real estate investments returning 0.18 percent and indirect investments down 0.10 percent. Global equities (-0.82 percent), infrastructure investments (-0.86 percent), foreign currency bonds (-1.89 percent), private equity (-2.50 percent), and hedge funds (-2.69 percent) experienced sharper declines.
Markets Remain Volatile
UBS pointed to ongoing economic uncertainty and geopolitical risks. «Tensions in the Middle East remain high, and developments in the run-up to the U.S. presidential election have the potential to shake the markets. We believe that markets will remain volatile in the coming months.»
