According to UBS, the pension funds achieved an average performance of 0.63 percent after fees for the month. The range among the observed funds varied between -0.25 percent and 1.30 percent, as detailed in a study released on Wednesday.

Year-to-date returns stand at 6.81 percent, with an annualized return of 3.17 percent since the inception of the UBS Pension Fund Barometer in 2006.

In September, larger pension funds with assets exceeding 1 billion Swiss francs had a median performance of 0.54 percent, underperforming smaller funds (with assets up to 300 million francs), which achieved 0.70 percent.

Mostly Positive Performance

«The average performance across individual asset classes was mostly positive in September,» UBS reported. Most major stock markets posted gains, with global equities rising by 2 percent. However, Swiss, UK, and Japanese equities were notable exceptions.

The best-performing assets were foreign currency bonds (2.16 percent), global equities (1.76 percent), CHF-denominated bonds (0.73 percent), indirect real estate investments (0.62 percent), and hedge funds (0.22 percent). Direct real estate investments (0.14 percent) and infrastructure investments (0.04 percent) posted modest gains, while private equity (-0.37 percent) and Swiss equities (-1.32 percent) had negative returns.

China Outperforms

China's fiscal and monetary incentives led to a 23.3 percent surge in Chinese equities. Additionally, the US Federal Reserve initiated a rate-cutting cycle, contributing to all-time highs in select US stock indices. Other central banks, including the ECB and SNB, also cut rates as inflationary pressures eased.

Positive Outlook Persists

UBS experts recommend that investors prepare for lower interest rates and potential market impacts from the US elections. «The positive outlook for equities and bonds remains intact as global economic conditions stabilize,» they added.