With a performance of -1.91%, the Pension Fund reported its first negative annual result since 2008, although it was once again above average in comparison with the UBS pension funds barometer (-3.45%).
Performance in 2018
With a performance of -1.91%, the Pension Fund reported its first negative annual result since 2008, although it was once again above average in comparison with the UBS pension funds barometer (-3.45%).
Details of Investment Performance
The broad diversification of our assets made it possible to limit losses across the portfolio as a whole. Indeed, four asset classes closed 2018 in the black. Private equity investments (+10.8%) are still benefiting from upward revaluations. In the alternative investment segment, infrastructure (+3.2%) and alternative bonds (+2.4%) also met their targets. Swiss real estate – which has the highest weighting at around 31% – also achieved a positive return, of 2.2%. The Pension Fund profited from a regular rental income here.
Swiss equities (-9.6%) and foreign equities (-8.9%) recorded the greatest losses, although their results were still comparable with those of their benchmarks. Insurance-linked securities were significantly negative (-7.0%) for the second successive year. This unfavourable outcome was the result of a variety of loss events, such as hurricanes, and wildfires in California. Unlike Confederation bonds in Switzerland, corporate bonds internationally fell considerably (-4.3%).