Equities’ negative performance knocked the growth of the Swiss investment fund market in the third quarter of the year, with almost all asset classes suffering outflows, according to figures published by the Asset Management Association Switzerland (AMAS).

Money managed in Swiss funds decreased at the end of September by 1.3%, or CHF18.46bn, compared with the end of June, to CHF1.36trn, the figures show.

However, since the start of the year the balance in terms of asset volume remains positive, with a 2.8% increase, equalling to CHF36.72bn.

In the first nine months of this year, investment strategy funds suffered outflows of CHF2.5bn, with bond funds losing CHF2bn, and alternative investment funds CHF1.4bn. Investors also pulled money from commodity funds (CHF1.3 bn) and real estate funds (CHF548m), according to AMAS.

Only equity and money market funds recorded a positive inflow of money in the first three quarters of 2023, with CHF3.9bn and CHF15.6bn, respectively.

The slowdown in the fund industry comes as Swiss pension funds suffered a setback in terms of returns in Q3, hit by declining equity markets and rising interest rates.

Adrian Schatzmann, chief executive officer of AMAS, said: “The renewed uncertainty in the markets, that had already emerged in the second quarter as a result of continuing inflationary pressure and fears of recession, has solidified.”

He added: “Investors are shying away from riskier asset classes now, while money market funds are a welcome alternative.”

UBS continues to hold the largest share of the investment fund market in Switzerland with 24.8%, followed by Credit Suisse with 12.8%, considered separate entities as long as investment funds are registered as and have individual names, meaning a stronger concentration in the future after the merger of the two institutions.

The market share of some asset managers increased, for example Pictet went from 5.6% in Q1 to 5.9% in Q3, and Blackrock from 7.6% in Q1 to 7.9% in Q3, while Lombard Odier went from 2.1% to 1.6%, and Vontobel from 2.4% to 2.7%. This movement was influenced by the takeover of Credit Suisse by UBS, according to AMAS.

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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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