Credit Suisse Pensionskasse Updates Investment Guidelines After UBS Takeover

Credit Suisse Pensionskasse Revises Investment Strategy Post-UBS Takeover
Credit Suisse Pensionskasse has significantly revised its strategic investment guidelines following the emergency takeover by UBS in March of the previous year. The pension fund’s 2023 financial statement highlights a comprehensive review of its investment policies, leading to prompt implementation of new decisions based on available data. The fund increased its bonds allocation and extended their duration.
The pension scheme experienced an "extremely challenging year" for tactical allocations, as indicated by the mixed performance of its active mandates and the frequent "monthly tactics meetings." Delayed pricing impacts from private market investments, which were beneficial last year, turned negative and significantly affected the fund’s performance. Without this adverse effect, the portfolio slightly outperformed its benchmark with a 5% return.
The scheme’s funding ratio decreased to 124% from 128.7% in 2022, with disposable funds dropping to CHF824.4 million from CHF1.42 billion the previous year. The effective asset allocation includes 47.4% in fixed income and credits, 46.5% in real assets, and 2.7% in cash. In contrast, the strategic asset allocation plans for 50.5% in cash, rates, and credits, 46.6% in real assets, and small portions in active and transition assets.
Asset management costs remained stable at CHF196.2 million, with private equity incurring the highest fees at CHF150.2 million.
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