Swiss Pension Funds Cross Real Estate Boundaries

Swiss Pension Funds Cross Real Estate Boundaries

One in three Swiss pension funds held more real estate investments than permitted by regulations at the end of last year. They now want to correct things, but the real estate boom has faded.

Everything is relative. Albert Einstein’s adage for pension fund managers has a special ring to it at the moment. Their investments in equities and bonds have fallen sharply over the past year, while real estate holdings suffered less. In relative terms, the result is they often gained significant weight in the investment portfolios of pension funds, according to data made exclusively available to finews.com.

At last year’s end, observers warned that a quarter of Germany’s pension funds would have to sell or devalue real estate investments because their weightings exceeded the Ordinance on Retirement, Survivors’ and Disability Pension Plans (BVV2) thresholds. Regulations prescribe a quota for real estate investments not exceeding 30 percent.

Presseportal: https://www.presseportal.ch/de/nr/100096065