Dear Insured Members,

We are pleased to inform you about the 2025 annual financial statements of our pension fund and about other topics:

Annual Financial Statements 2025 and Review

Financial markets once again performed positively in 2025. However, the outlook in the first months of 2025 was not ideal due to the US government’s tariff announcements and trade conflicts. Nevertheless, global stock markets delivered very good results. The strong business performance of US technology companies and the trend toward artificial intelligence led to significant share price gains in these companies. Swiss stocks also delivered good returns.

In addition to stocks, Swiss real estate also recorded good returns. Both the increase in property values and the ongoing net income contributed to this positive development.

Thanks to these positive developments, our pension fund achieved a return of 7.60% in the 2025 financial year. As a result, the balance sheet total increased from CHF 835.15 million to CHF 900 million. The funding ratio rose from 116.4% to 121.5%, taking into account the interest credited to retirement savings of 4.7%. Our pension fund is in a very solid financial position.

Below are the key figures for 2025:

• Employee contributions: CHF 19.63 million (2024: CHF 20.89 million)
• Employer contributions: CHF 44.41 million (2024: CHF 46.49 million)
• Number of active insured members: 1,310 (2024: 1,398)
• Number of pension beneficiaries: 263 (2024: 215)
• Pension capital of active insured members: CHF 539.43 million (2024: CHF 545.47 million)
• Fluctuation reserve: CHF 151.57 million (2024: CHF 113.98 million)
• Free foundation funds: CHF 3.25 million (2024: no free foundation funds)



A partial liquidation took place during the 2025 financial year in connection with the restructuring. The insured members were informed of this by letter dated 21 March 2025. Due to the increased number of departures and early retirements, the partial liquidation led to a reduction in the pension capital of active insured members from CHF 545.47 million to CHF 539.43 million. The partial liquidation had no specific impact on the insured members, since there were no free foundation funds as of the end of 2024.

The 2025 annual financial statements are available on the website:

Annual financial statements – Bayer Pensionskasse

Review of Return and Funding Ratio Development 2021–2025

The development of returns has a significant impact on the course of the funding ratio. After the funding ratio reached its peak of 124.80% in 2021 with a return of 9.6%, it fell to 110.20% in 2022 as a result of the negative return of -12.20%. The year 2022 was marked by the beginning of the war in Ukraine, which in Europe caused considerable uncertainty in some areas regarding energy supply. Because of such events, returns can fluctuate significantly. This underlines how important sufficiently high fluctuation reserves are so that a pension fund can absorb downturns in returns. Bayer Pension Fund Switzerland follows a long-term investment strategy and was therefore able to benefit quickly again from the recovery in the investment markets from 2023 onward.

Bayer Pension Fund Switzerland with Above-Average Interest Credited to Retirement Savings

The insured members of our pension fund benefit from an above-average interest rate on their retirement savings. Each year, the Federal Council sets a minimum interest rate for retirement savings (the so-called BVG minimum interest rate). Depending on the level of returns and the funding ratio, the Board of Trustees has the flexibility to decide on a higher interest rate for retirement savings. How does Bayer Pension Fund Switzerland compare with other pension funds in terms of interest crediting? A comparison with the Swiss Pension Fund Study is particularly informative¹.

At Bayer Pension Fund Switzerland, the average interest rate from 2021 to 2025 was 4.4%. It is therefore significantly higher than that of the Swiss Pension Fund Study, which was 3.5% (5-year comparison).

Bayer Pension Fund Switzerland also performs above average over the period from 2016 to 2025 (10-year comparison). Its average interest rate was 4%, whereas according to the Swiss Pension Fund Study it was 2.8%. The level of interest credited has a significant impact on the level of retirement benefits at retirement, which is why it is rightly referred to as the third contributor.

Outlook for 2026

Financial markets in the first half of 2026 were characterized by at times significant volatility. The reasons behind this were primarily geopolitical tensions in the Middle East, but also changing expectations regarding interest rates, inflation, and rate cuts in the US and Europe. In addition, technology stocks also showed very positive performance. As of 30 June 2026, Bayer Pension Fund Switzerland achieved a return of 5.5%. As a result, the funding ratio is in the region of 127%.

The Board of Trustees is currently reviewing a new investment strategy. It has proven advisable to carry out such reviews every three to four years. We will inform you in due course about any adjustment to the investment strategy.

If you have any questions, the contacts at Kessler Vorsorge AG and the members of the Board of Trustees will be happy to assist you.

Best regards,

Bayer Pension Fund Switzerland

¹ The Swiss Pension Fund Study is representative, as the pension assets of the surveyed pension funds total 939 billion Swiss francs. The surveyed funds cover more than 3 million active participants and 0.9 million retirees (Source: Swiss Pension Fund Study 2026).