Swiss Fund Market Reaches Record High in Q1 2024

The Swiss fund market experienced a robust recovery in the first quarter of 2024, reaching an unprecedented volume of CHF 1.5 trillion, according to data compiled by Swiss Fund Data AG and Morningstar. This surge, driven by performance gains, marked an increase of 8.7% or CHF 127 billion compared to the end of 2023, showcasing a significant rebound from the challenges of 2022.

Adrian Schatzmann, CEO of the Asset Management Association Switzerland, expressed satisfaction with the market's progress, stating, "The development of the Swiss fund market is very pleasing with the achievement of a new record volume, especially after the markets went through a very difficult period given the geopolitical risks and fears of inflation and recession."

Equity markets played a crucial role in driving growth, with Swiss equity funds achieving a remarkable 12.6% return for the quarter. Property funds also contributed significantly, posting an impressive 12.9% performance. All asset classes demonstrated positive returns, reflecting overall positive market sentiment.

Despite the market's upward trajectory, investor confidence remained cautious, with modest net inflows of CHF 6.9 billion. The majority of these inflows were directed towards bond funds (CHF 6.6 billion) and money market funds (CHF 3.1 billion), while equity funds attracted only CHF 541 million in new investments.

In terms of market structure, UBS led the pack, followed by Credit Suisse, with BlackRock also making gains and increasing its market share to 8.5% in Q1 2024, primarily driven by performance gains and inflows into passive investment products.

The performance of selected indexes and currencies also showed notable trends, with the Dow Jones rising by 5.62%, S&P 500 by 10.16%, EURO STOXX 50 by 12.24%, and SMI by 5.32%. However, the SBI experienced a modest increase of 0.47%. On the bond side, the Bloomberg Barclays US Aggregate Bond Index showed a decrease of 0.78%. Currency-wise, the EUR gained 4.81% against the CHF, while the USD strengthened by 7.14%.

By fLEXI tEAM