The annual Pension Fund Real Estate Benchmark examines the performance of real estate portfolios held by pension funds and occupational benefit plans. The study refers to the year 2016 and aims to provide benchmarks for pension funds for analysis and control of their real estate portfolios.
In times of negative interest rates and low yields on the bond market, pension funds tend to invest heavily in real estate. However, rising vacancy rates and declining yields are considerably reducing the contribution that such investments make toward overall pension scheme performance. By contrast, foreign real estate offers significant investment potential. While many pension schemes are already exploiting the potential of the Swiss real estate market through a very high investment weighting, investments in foreign real estate remain relatively rare, accounting for just 1.3% of total assets.
Further highlights of the study:
Find the complete study in German for download here:
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