Compenswiss, the public institution managing Switzerland’s first pillar social security funds AHV, IV and EO, has returned 7.33% net last year, a result that helped boost assets under management by CHF5.5bn, the scheme said today.

Assets managed by Compenswiss amounted to CHF46.1bn at the end of 2024, compared with CHF40.6bn a year earlier, it added.

Both positive returns on investments, and an increasing amount of funds coming from a VAT increase from 7.7% to 8.1 %, a measure approved with the first pillar reform that entered into force last year, contributed to the increase in assets under management in 2024, the scheme said.

Compenswiss total assets include invested capital amounting to CHF43.36bn, and liquid assets amounting to CHF2.73bn.

For the AHV fund, the largest of the three under management, returns stood at 7.01% last year, up from 4.81% in 2023, while the IV fund returned 7.13%, up from 4.76% a year earlier; the EO fund also saw returns of 7.13% in 2024, up from 4.90% in 2023.

All asset classes contributed to the positive result in 2024 that, however, could not fully offset the returns of -12.85% recorded in 2022, the scheme said.

Director Eric Breval said: “Swiss and especially US stocks, and gold investments, made a significant contribution to the good result [in 2024, but] the cumulative investment result for the last three years is -1.80%.”

Compenswiss warned in a statement today that the financial stability of the AHV and IV compensation funds remains at risk in the medium term.

Manuel Leuthold, chair of the board, added: “The good investment result last year should not hide the fact that Compenswiss could be forced to gradually liquidate part of its assets in the near future in order to be able to meet its legal obligations if the financing issues of AHV and IV are not resolved in a timely manner.”

The Federal Social Insurance Office (BSV) forecasts a deficit for the AHV from 2026, caused by the 13th month of pension to be paid following a ballot.

Without additional funds, the imbalance between income and expenses will lead to a decline in the assets of the AHV fund in the next few years, the scheme said.

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Luigi is IPE's Berlin-based DACH correspondent. His coverage includes regulation and the latest pensions and investments trends, and, being a native Italian, he also covers Italy’s pensions market. He has reported from Italy and Germany on international politics and business for European and US publications including USA Today, Bloomberg BNA and for the investigative magazine L’Espresso. He was previously Germany correspondent for Mergermarket covering M&A.View full Profile

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