Credit Suisse’s Schweizer Pensionskassen Index found that Swiss pension funds returned 5.49% in the first quarter of 2019, the highest return since the inception of the index.

In the quarter, the index increased by 9.17 points. The index is at 176.13 points, as of 31 March, and after a weak 2018, the funds are gaining momentum and closing at a record high, Credit Suisse said.

“January in particular (3.05%) had a positive impact. The encouraging months February (1.25%) and March (1.10%) make a successful quarter perfect,” it wrote in a statement.

The majority of the positive developments came from equities, Swiss equities contributing 1.73% and foreign equities 2.20%. Bonds and real estate also saw positive returns, 0.78% and 0.72% respectively.

Liquidity is slightly down, Credit Suisse said, by -0.10%.

The index level of the BVG minimum interest rate has risen by 0.38 points (or 0.25%) to 154.00 points in the reporting quarter. Thus, the return of the Credit Suisse Swiss Pension Fund Index in the 1st quarter of 2019 is 5.24% above the BVG target.

The annualised return of the Credit Suisse Swiss Pension Fund Index (since 1 January 2000) is 2.98% as of March 31, 2019. The is an annualised BVG minimum interest rate is 2.27%.

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