On average, Swiss pension funds posted a zero return in the first quarter of 2025. Given the volatile developments, funding ratios moved sideways, according to the Swisscanto Pension Fund Monitor published on Thursday.

The estimated funding ratio of privately managed pension schemes stood at 121,5 percent as of March 31, 2025, down 0,1 percentage points from the previous quarter. Public pension funds with full capitalization recorded a funding ratio of 113,8 percent, while public funds with partial capitalization reached 90,9 percent.

«The strong performance in the financial markets in 2024 enabled pension funds to further build up their financial reserves,» wrote the Swisscanto experts. As a result, the turbulence since the beginning of the year has had little impact so far.

The highest contributions to returns during the quarter came from Swiss equities, up 8,6 percent, and commodities, up 6,3 percent. In contrast, global equities had the weakest performance at –4,1 percent, followed by Swiss bonds, which declined 1,4 percent.

Expectations for the coming months are muted. The first three months offered «a bittersweet taste» of what lies ahead.

«The U.S. announcement of global tariffs has increased the flight to safe havens such as government bonds.»

Falling interest rates in the eurozone may stimulate consumption and boost economic activity. However, rising uncertainty in the U.S. is simultaneously fueling fears of a recession.