SWITZERLAND - The Credit Suisse Asset Management (CSAM) Swiss Pension Fund Index performed "very well" once again in the second quarter of 2005, rising 3.71% from 105.70 to 109.62.
CSAM said it marked the “largest increase ever” immediately following a quarter that had also performed well, but without the catch-up effect.
A spokeswoman for CSAM said: “Higher growth has only been achieved to date in the second quarter of 2003 (+6.71 percentage points, i.e. 7.6%) and in the fourth quarter of 2001 (+4.56 percentage points, i.e. 4.8%).
“And the fact that the last four quarters all performed positively makes the results even more impressive.
“Extrapolated Pillar 2 assets under management of Swiss pension funds thus increased by around CHF19bn (US$15bn) to more than CHF540bn ($427bn) in the second quarter of 2005.”
In addition, in comparison to the first quarter of 2005, the ratio of Swiss francs to foreign currencies continued to shift in the latter’s favour. While the CHF bond allocation fell by 0.3%, the reduction in Swiss equities was lower this time, at 0.27%.
Foreign equities and foreign currency bonds continued to benefit (+0.40% and +0.8%, respectively). Alternative investments remained at the level of the preceding quarter (2.0%).
The spokeswoman added: “Interestingly, the overview of asset allocation diversification showed no significant change in the maximum values.
“What does stand out, however, is the fact that the minimum values have increased for both foreign currency bonds and foreign equities, from 0%to 3.5 and 4.5%, respectively.
“This means that every pension fund included in the index now has investments in these asset classes.”
The CSAM Swiss Pension Fund Index is not an artificially constructed performance index but an index that is based on actual pension fund data.
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.
This week's top stories include an article on climate activists from Extinction Rebellion crashing the PLSA's local authority conference, and an in-depth piece on the Court of Appeal's ruling on the BIC UK Pension Scheme case.
Engagement in pensions is rising but there are still a number of barriers to overcome. Natanje Holt looks at the key issues that need to be tackled