Swiss Pensionskassen prepare to face rising interest rates, inflation

Swiss Pensionskassen have been preparing for a challenging environment of rising interest rates, high inflation and capital market volatility, while taking a hit on returns in the first months of the year as a result of the war in Ukraine.

“We have seen in the last one or two years that some Pensionskassen have started preparing for rising inflation by buying gold and precious metals, functioning as reserve currency,” Thomas Breitenmoser, head of investment consulting/controlling at Complementa, this week told a conference call on a Pensionskassen risk check-up study published by the Swiss consultancy.

Pensionskassen have been cutting fixed income allocations to reduce portfolio risk, many working on “rule-based” terms for tactical allocations with good results in the long-term, he said, adding that “timing is extremely difficult”.

For Pensionskassen betting on timing equity allocations have been tactically reduced to fend-off risks in favour of liquidity, he said.

Please click here to read the full article by Luigi Serenelli from IPE.

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