EUROPE - Credit Suisse Asset Management Swiss Pensions Index touched its lowest level in its three year history in September last year, and was barely above its minimum level at year end after a mild rally in the fourth quarter.
The index based at 100 at its launch on 1 January 2000 stood at 90.49 at 31 December 2002.
The index analyses the performance of 57 Swiss pension funds which use CSAM’s global custody services, varying in size from SFr50m to several billion Swiss Francs. Each one, regardless of size, is given equal weight in the index. Results of the survey are published quarterly.
The SFr90bn covered by the index represents around one third of the Swiss second pillar total assets in global custody.
The index provides a snapshot of changes in asset allocation over the course of last year.
Pierre-Andre Leuenberger, director for institutional clients in Geneva, said the changes over the year were not merely driven by changes in the market but by an active change in asset allocation.
“If you adjust this portfolio to the market in a passive way you would have by the end of the year a holding in Swiss bonds of more than 40%.
“If you take the reality of pension funds you see it is 36%. My conclusion is pension funds sold Swiss bonds during 2002. What did they buy instead? They diversified into foreign bonds, foreign equities and a little bit more cash.”
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