Assets under management (AUM) for the UBS pension fund have climbed to CHF28.8bn (€30.2bn) year-on-year in 2023, on the back of positive returns, a spokesperson for the bank told IPE.

UBS Pensionskasse’s total assets stood at CHF27.8bn at the end of 2022 and CHF28.4bn at the end of January 2023, ending last year with a CHF28.8bn pot, the spokesperson added.

The positive development comes on the back of the scheme’s results, posting a 5.4% return for last year, a turnaround from -8.4% recorded during a difficult 2022.

The scheme’s returns in 2023 were above the average of 5.1% recorded by Swisscanto in its annual study on Pensionskassen.

According to Swisscanto, the best-performing pension funds in Switzerland achieved a net performance of 5.43% last year, applying an interest rate on retirement savings of 3.70%, against an average of 2.44%.

UBS pension fund applied an interest rate on retirement assets of 9% last year, up from 7% in 2022, the spokesperson added. A higher interest rate was applied last year despite the fact that the UBS Pensionskasse’s economic funding ratio dipped to 121.4%, from 130.0% in 2022.

Potential merger with Credit Suisse

The economic funding ratio of Credit Suisse Pensionskasse, which could potentially merge with the UBS pension fund, stood at 111.5% last year, according to its latest annual report.

Experts told IPE that the funding ratios of both pension schemes should converge in order to proceed with a potential merger, and protect the rights of all beneficiaries of both funds.

Credit Suisse Pensionskasse will align its pension plans to those of the UBS pension fund, as of 1 January 2027, closing down 1e pension plans for high earners.

Credit Suisse’s Pensionskasse 2 offers a 1e plan that, according to experts, should close to proceed with the merger, as the UBS pension scheme does not offer those plans.

Credit Suisse’s scheme had AUM of CHF17.30bn last year, posting a 5% return on invested assets, according to its report.

The pension fund conducted a “comprehensive review” of the strategic guidelines following the takeover of Credit Suisse by UBS in March last year. It bumped up its bonds allocation and the duration was extended, it 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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