Nestlé's recent struggles in the stock market are causing difficulties for pension fund investors.

The company has significant holdings in various pillar 3a products, such as UBS's Vitainvest range and ZKB's Frankly funds, which are closely tied to the Swiss Market Index (SMI).

The performance of the SMI is heavily influenced by Nestlé, as well as other major players like Novartis and Roche.

This concentration of holdings creates a risky situation for investors in index products, especially when the prospects for these major companies are not promising.

Björn Eberhardt, Head of the Investment Office at Luzerner Kantonalbank, emphasized that investors should not expect significant price gains in such circumstances.