Pension funds: negative return for UBS in July (cross-border guide)

Context

In Brief

• Average net return as of July -0.2%
• Swiss bonds -1.1% and foreign bonds -0.8%
• Swiss stocks +0.7% and foreign stocks +0.1%
• Real estate +0.3%

Key Facts

• What: Pension fund return analysis
• When: July 2026
• Where: Zurich
• Who: UBS
• Amount: Average return -0.2%

July proved to be a negative month for Swiss pension funds, according to a periodic analysis conducted by UBS. The average return, net of expenses, stood at -0.2%. This was the second negative month of 2026 for the Swiss pension sector. Experts advise diversification to tackle market uncertainties in the second half of the year.

Analyzing individual investment classes, the result was particularly influenced by Swiss bonds with a -1.1% and foreign bonds with a -0.8%. Conversely, Swiss stocks recorded a +0.7%, foreign stocks a +0.1%, and the real estate sector closed at +0.3%, as shown in the tables published by the bank. In the period under review, the most inspired pension fund achieved a return of +1.0%, while the least prudent or fortunate one recorded a -2.1%.

Performance by size and historical performance

For small pension funds with assets under CHF 300 million, a -0.2% was observed, a value similar to that recorded by medium-sized funds with assets between CHF 300 million and CHF 1 billion. A bit more challenging, with a -0.3% rate, were large funds managing over CHF 1 billion. Cumulating data for the first seven months results in a provisional 2026 performance of +4.2% for Swiss pension funds.

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Operational details

Renewed tensions in the Middle East and volatility in the technology sector weighed on the market climate in July, with the result that global and US equities remained broadly unchanged, UBS experts said. Bond markets fell across the board as rising oil prices and geopolitical risks pushed yields higher.

Market and portfolio outlook

According to the bank's analysts, the stock market is expected to continue to grow in the coming months. The driving role should extend beyond mega-cap technology companies, underpinned by robust economic growth and structural issues such as artificial intelligence, energy and resources, as well as longevity. Professionals also recommend maintaining a well-diversified portfolio across regions and sectors to mitigate volatility risks.

For workers active in Swiss territory, including frontier workers who accumulate shares in the second pillar, understanding the trend of financial returns helps to assess the solidity of their occupational pension institution. Active management and diversification remain essential tools to protect accumulated capital in the face of cyclical fluctuations and international geopolitical factors that continue to influence global financial markets.

Useful tools to protect your net income

To reduce FX leakage, compare CHF-EUR exchange options and banks for cross-border workers.

Key points

The management of occupational pension and pension funds requires a careful analysis of your contribution position. Knowing the performance of pension funds allows you to better plan your social security choices in Switzerland. To deepen the contribution situation and verify the impact of deductions on your calculator payroll, you can consult official data and tools dedicated to workers.

Choices and social security planning

Experts recommend that you regularly monitor the documentation provided by your social security institution and evaluate any redemption or second pillar planning options based on your work and personal needs. The diversification promoted by managers aims to stabilise returns in the medium and long term, reducing the impact of negative months such as the one recorded in July.

For further checks on taxation and on the management of social security and wage contributions in Switzerland, it is useful to rely on the calculation tools available online calculator.

Source: tio.ch