Swiss pension funds with positive performance in November: experts explain the reasons

Swiss pension funds with positive performance in November: experts explain the reasons

According to a report by www.bluewin.ch Swiss pension funds achieved a positive performance in November. The average return was 2.35 percent after fees. The best return was achieved by a small pension fund with assets under management of less than 300 million francs, while a medium-sized pension fund with assets under management between 300 million and 1 billion francs recorded the worst performance at 0.97 percent.

The study authors attribute the good performance of the pension funds to the broad-based gains on the financial markets, which resulted from the optimism of the markets across all asset classes. Both stocks and bonds rose sharply. Additionally, signs of a slowing inflation boosted expectations that interest rate cuts could be on the cards in the first half of next year. Swiss stocks rose 4.85 percent and global stocks rose 4.72 percent. Bonds in Swiss francs and foreign currencies also performed positively. Only hedge funds and private equity recorded negative returns, which were mainly influenced by the weak dollar-franc exchange rate.

The positive performance of pension funds in November has several implications for the market and consumers. The increased returns may enable pension funds to improve their financial stability and increase pensions for those insured. This could also lead to contribution rates remaining stable or even being reduced in the future. In addition, the increased yield could help improve overall economic stability and increase consumer confidence in the pension system.

Overall, the positive performance of Swiss pension funds in November shows that the financial markets are robust and support the pension sector. This could have long-term positive effects on pension provision and the economy.