According to the latest Pension Fund Monitor published on Tuesday by Zürcher Kantonalbank (ZKB), the asset-weighted average return of Swiss pension funds stood at –0.1 percent for the second quarter. Year-to-date performance remained marginally positive at 0.1 percent as of mid-year.

The estimated funding ratio for privately managed pension schemes declined to 115.9 percent. As of June 30, 2025, public pension funds with full capitalization recorded a funding ratio of 110.3 percent, while partially capitalized public funds posted a lower ratio of 88.7 percent.

(Graphic: ZKB)

In terms of asset class performance during Q2, Swiss real estate (both direct and indirect) and CHF-denominated bonds made the largest positive contributions, with returns of +0.9 percent and +0.8 percent respectively. On the negative side, commodities fell sharply by –12.8 percent, while global bonds (unhedged) declined by –6.0 percent.

Over the first six months of the year, Swiss equities led the performance table with a return of +6.9 percent, followed by Swiss real estate (direct and indirect) with +2.1 percent. Commodities and global bonds (unhedged) again ranked at the bottom, returning –7.2 percent and –5.8 percent, respectively.

(Graphic: ZKB)

ZKB described recent market developments as akin to a «wild rollercoaster ride.» With the expiration of the 90-day grace period for U.S. tariffs, uncertainty has risen once again. The key question now is whether pension funds can maintain their resilience in this environment. So far, they have largely succeeded.