Facts & Figures
Statistical Data
Let us start with some statistical data on Novartis Pension Fund 1 as reported in the actuarial statement:
On 31 December 2025 there were 9 520 (previous year: 10 251) actively insured members compared with 13 318 (previous year: 13 552) retirees, of whom 8 487 had reached retirement age, 260 were drawing a disability pension, and 4 067 were drawing a widow(er)’s pension. Orphans’ and children’s pensions accounted for a further 504 current pensions. The average current pension income amounted to CHF 39 902 (previous year: CHF 40 092.
Coverage Ratio
The funding ratio is calculated as the ratio of tied assets to free assets. Based on the statutory method of declaration in accordance with art. 44 para. 1 BVV 2, the funding ratio amounted to 124.1%. This means that the financial situation has been significantly strengthened compared to the previous year and that the fluctuation reserves are at their target level. Hence, the capacity of Novartis Pension Fund 1 to manage financial risk is deemed unrestricted within the framework of its strategic asset allocation. Also reflected in the funding ratio are the substantial increases of the actuarial reserves for pensions over the past years and the provisions made
for financing compensation credits in the context of the conversion rate adjustment enacted in January 2022. With all these measures, due account was taken of the low interest rate levels that have persisted for years and the continuously rising life expectancy.
Performance
After a positive start to the year, financial markets faced erratic US trade policy and geopolitical tensions in the Middle East in 2025. The US tariff increases announced in April initially led to market declines, before global stock markets recovered rapidly. Emerging markets in particular benefited from stable commodity prices and rising demand. In the third quarter, the European Central Bank (–50 bp) and the US Federal Reserve (–25 bp) cut interest rates significantly, strengthening expectations of a ‘soft landing’. Robust corporate earnings, particularly in technology and industry, supported share prices. The SNB lowered its key interest rate to 0.5% in September and maintained this level until the end of the year.
Despite this easing, the Swiss franc strengthened significantly against the major currencies over the course of the year, driven by capital inflows and its role as a safe haven. Overall, global growth remained solid. The S&P 500 rose by around 15%, the European STOXX 600 by 9%, the MSCI Emerging Markets by 12% and the TOPIX by 10%. Yields on 10-year US government bonds stabilised at around 4%, while corporate bonds benefited from tighter credit spreads. Despite geopolitical tensions, 2025 proved to be a year of resilience, supported by expansionary monetary policy and solid corporate momentum.
In this environment, equities performed best with a gain of 17.49%, followed by infrastructure (+6.08%), alternative investments (+4.58%), investments in real estate (+4.16%), bonds (+0.43%) and cash and cash equivalents (+0.13%), while foreign currencies (–4.06%) tended negatively. Overall, the performance of the Pension Fund Novartis 1 amounted to 5.90%, outperforming the benchmark (5.71%) by 19 basis points.
Are you interested in further information?
As a member of the Novartis Pension Funds, you may obtain the detailed Annual Report for from the Pension Fund Team: Please feel free to call
+41 61 529 44 54 or email to:marco.armellini@novartis.com