Categories: Market

In the third quarter: Pension funds suffer from weak stock markets

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Swiss pension funds were negatively affected by weakness in stock markets in the third quarter. This means that the recovery in pension fund coverage ratios has faltered once again. Pictured is a stock trader. (symbol image)

The “average Swiss pension fund” had a negative performance of -0.5 percent in the third quarter of 2023, according to the Swisscanto pension fund monitor published on Thursday. This is said to mean that its total return this year will drop to 3.6 percent. In addition to the downward trend in stocks, bonds also showed a downward trend in the quarter under review.

The coverage rates of private pension funds estimated by Swisscanto also decreased from 113.5 percent in the previous quarter to 112.6 percent. The coverage rate of 41 percent of private law funds was still above 115 percent (VQ ​​46%), while the rate of fully capitalized public law funds remained unchanged at 13.5 percent.

The number of private pension funds in deficit increased slightly to 1.6 percent (previous year: 1.3%). While the rate of funds under 100 percent in fully capitalized public funds remained constant at 8.1 percent, this rate remained at 89 percent in partial capitalization.

The estimates are based on information from 472 pension funds with total assets of 738 billion francs, according to Swisscanto.

(SDA)

Source :Blick

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