SWITZERLAND - Swiss pension funds returns nearly halved in 2006 to end the year on 6.9%, according to the Swiss Pension Fund Association (ASIP).
The 72 member funds of the organisation had enjoyed a bumper year in 2005, returning 13%, but were unable to carry that through to last year.
On the positive side, the funds beat the benchmark in both foreign and domestic bonds.
Despite high interest rates and funds not outperforming the median index in either foreign or domestic equities, good overall market figures meant a significant return.
Internal analysis of the results highlighted the importance of the foundation board’s investment strategy which it said must correspond to the risk taking capabilities of the fund. The 6.9% performance in 2006 was realised on an annual risk of 3.6%.
Pension funds affiliated to ASIP manage 150bn CHF in over 600 portfolios. The average portfolio combines 40% bonds, 40% equities and 20% Swiss real estate, hedge funds and other investments.
The Pensions Regulator (TPR) has set out plans to use "new regulatory initiatives" with over 1,000 schemes as it aims to tighten its regulatory grip and boost member outcomes.
HM Revenue and Customs (HMRC) has announced it is delaying the provision of data that will enable pension schemes to confirm the guaranteed minimum pension (GMP) benefits to pay to members until the end of the year.
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