At a glance
- The PPCmetrics Pension Ticker is a daily updated estimate of the performance and funding ratio of Swiss pension funds.
- It reflects data from over 350 pension funds with an asset base of more than CHF 750bn and a number of beneficiaries of more than 3m.
Data basis
The PPCmetrics Pension Ticker covers over 350 pension funds with a total of more than CHF 750bn in assets. The key figures of the PPCmetrics Pension Ticker are based on an approximated daily update of the asset allocation, the realised return and the target return.
The published key figures therefore change over time as a result of the financial market performance, but also because of changes in the asset allocation or the peer group composition, as well as the available pension fund data. In addition, the return on illiquid investments is sometimes estimated using liquid equivalents, which can lead to deviations from the effective portfolio return. The published key figures are always expressed as medians.
Definitions
Year to date performance: This figure denotes the average (median) return of the peer group realised to date since 1 January of the current year (approximation).
Actuarial funding ratio: To calculate the actuarial funding ratio, pension assets are set in relation to pension liabilities. To compute pension liabilities, the plan benefits are discounted at the technical interest rate. The actuarial funding ratio is the com-mon regulatory measure of a pension fund’s financial situation (Art. 44 BVV 2).
Economic funding ratio: The economic funding ratio corresponds to the ratio of pension assets to guaranteed liabilities, which are valued at the current risk-free market interest rates and do not include liabilities from guaranteed benefits that have not yet been vested, for example, future pension losses. Because of the consistent (mark to market) valuation of assets and liabilities, the economic funding ratio is a key figure for pension risk management.
Economic funding ratio incl. future benefits: The definition is analogous to the economic funding ratio, though the denominator, pension liabilities, does also include guaranteed benefits that have not yet been vested (e.g. future pension losses), estimated over the next five years.
How can we assist you?
As a leading consultant for pension funds, we have extensive knowledge of the Swiss pension fund market.
We would be pleased to assist you with the following services:
- Extensive consulting in Asset and Liability Management (e.g. analysis of return requirements and risk capacity, optimisation of the investment strategy and assessment of new asset classes).
- Individual peer group analyses of funding ratios, interest rates, returns, asset allocation, fees and many more, tailored to the needs of your pension fund.
- Online access to extensive peer group comparisons of the structure of Swiss pension funds via our interactive web platform MyPPCmetrics.
