Swiss pension funds have experienced heavy losses since the start of the year and the coverage ratio has fallen by around 11 percentage points. Thomas Breitenmoser, Head of Investment Consulting/Controlling, puts the situation in context:
«We are currently experiencing the 2nd worst year – to date – in financial markets of the past twenty years. We are seeing significant drops both on bonds and equities. However, the liabilities of the pension funds are on average still covered. We are glad to see this because the people responsible at pension funds have systematically done their “homework” over the past few years, and as a result the funds came into the crisis generally fit and with decent reserves. It is precisely for such market turbulences that investment strategies are put through various stress tests before implementation. The losses, albeit painful, are within expectations. We therefore presently do not see any need for hasty adjustments of the investment strategies.»
Thomas Breitenmoser
Head Investment Consulting / Controlling