Yet another pension fund warning of being underfunded. The effects of this are yet to be felt in the markets. Once the many private unicorns fail to live up to their valuation expectations there will be further pressure on pension funds.......Aivars Lode
The funding level of some Swiss pension funds is set to fall considerably after the equity market volatility of last year.
Preliminary calculations relating to funds from the cantons of Zurich and Schaffhausen were presented by the BVS, the regional supervisory body for Pensionskassen and foundations in these two cantons.
Speaking at the authority’s annual conference, Roger Tischhauser, director of the BVS, said that “a typical pension fund will report a lower funding level by 400 to 600 basis points because of the capital market developments” in 2018.
This year, Tischhauser said he expected “an additional 12 or more pension funds” under BVS’ supervision to report underfunding in their 2018 annual reports.
