SWITZERLAND - Swiss pension funds failed to make most of the booming stock market in the third quarter of 2006 and only increased their equity exposure by 0.62% over the period.
According to the Credit Suisse Swiss Pension Fund Index, Swiss and foreign equity weightings increased by just 0.3% and 0.32% respectively.
This was not due to an increase in allocation but to a decrease in the exposure to CHF bonds and foreign currency bonds by 0.17% and 0.16%.
The slight increase in equity exposure was said to point to net sales of shares.
Despite the healthy performance of the equity markets, Swiss pension funds held onto their real estate allocation, which continued to increase quarter on quarter. The relative weighting was up to 13.6% from 13.4%.
In Q2, the funds had increased their real estate holding in reaction to the weak equity and bond markets.
The exposure to alternative investment slid in Q3 from 1.83% to 1.61%.
Over the period under review the assets managed by Swiss pension funds grew by almost CHF23bn (e) to just over CHF600bn and improvement on the previous quarter when they fell by around CHF13.6bn to less than CHF580bn.
Enhanced powers for The Pensions Regulator (TPR) to prosecute and fine company directors who "wilfully or recklessly" put their defined benefit (DB) pension scheme at risk will be hard to enforce, commentators say.
Melrose has pledged to contribute up to £1bn to GKN's pension schemes as part of a final offer to acquire the engineering business.
Existing master trusts will be forced to pay £41,000 when applying for authorisation under the upcoming regime, the government has confirmed.
UPDATE 2 - DWP publishes DB white paper: Stronger powers for TPR, DB chair statements to be introduced
The Pensions Regulator (TPR) will be given the power to fine company bosses who deliberately puts their defined benefit (DB) schemes at risk, the government has confirmed.