Evolving Requirements: Pension Funds Need Better Data

The expectations that pension funds place on real estate data have grown considerably.

Pension funds are long-term investors. They need to understand not only what investment vehicles declare as their strategy, but whether those strategies translate into actual decisions and results over time. This requires data that allows meaningful comparison across vehicles, consistent monitoring of performance, and makes it possible to verify that reported figures reflect reality.

For indirect investments, where pension funds hold positions in funds, foundations, and listed vehicles, this challenge is particularly acute. With a very large number of real estate investment vehicles of different types in the Swiss market, reporting depth and methodology vary significantly due to different levels of obligation in what they have to disclose. Comparing holdings across different vehicle types therefore means reconciling information that was not necessarily planned to be comparable.

Pension funds increasingly require standardized, reliable data to evaluate investments before allocating capital, to monitor whether performance matches expectations, and to report transparently about performance and sustainability of their investments to pensioners. For direct portfolios, pension funds control their own data but still need external benchmarks to understand relative performance and identify improvement opportunities.

Why This Matters: Decisions, Monitoring, and Reporting

The implications extend across the investment lifecycle.

When selecting among indirect real estate vehicles, pension funds benefit from objective comparison. Without consistent metrics, selection risks relying on impressions, relationships or reputation rather than rigorous analysis of performance, risk, and sustainability credentials.

Ongoing monitoring is equally important. Pension funds need to assess whether the vehicles they invest in actually execute on declared strategies, not just communicate them well. Reliable data makes it possible to identify discrepancies between stated intentions and actual results and trajectories.

Reporting allows pension funds to disclose how they are managing their assets, both from a performance and ESG perspective, and their current state. Pensioners have a right to understand how their retirement assets are invested. Accurate reporting requires accurate underlying data.

From Optional Reporting to Operational Necessity

The conversation around real estate data has fundamentally changed.

Previously, sustainability reporting signaled that a pension fund cared about the impact of its investments. It was primarily a values statement.

Today, sustainable practices also protect against future capital expenditure and help preserve asset value over time. Sustainability data has become relevant for identifying resilient investments, not only for demonstrating responsibility. Having detailed and transparent data on real estate investment performance is becoming a requirement for effective operations.

This is not only about compliance. It is about comparing investments meaningfully, verifying that strategies translate into results, and making allocation decisions grounded in evidence rather than assumptions.

Integrating reliable, comparable data into investment processes becomes both a governance imperative and a performance opportunity. Pension funds that access high-quality data position themselves to meet rising expectations while making better-informed decisions.

Looking Forward

Expectations for data quality, transparency, and comparability should continue to rise. Pension funds that can demonstrate rigorous, evidence-based management of their real estate holdings will be better positioned to meet their obligations and maintain stakeholder confidence.

For pension funds, the question is not whether reliable, comparable data matters, but how to access it. The tools to support this transition already exist. Independent data providers, academic benchmarks, and standardized frameworks offer options that did not exist a few years ago.

If you are interested in exploring how comprehensive and reliable real estate data can support your pension fund's analysis and decision-making, we at Quanthome look forward to the conversation.