SWITZERLAND - Swiss pension funds returned a mere 0.1% for the third quarter of the year due to overweighting and security selection in Swiss and foreign equities, according to WM Performance Services.
But the return was an improvement from the negative 1.1% return in the second quarter of 2004.
WM Performance Services – the European performance measurement arm of State Street – released the results, which were part of the company’s Swiss Balanced Universe for third quarter of 2004. The universe consists of selected Swiss pension fund portfolios spanning a range of sizes and asset managers.
“The underperformance of Swiss pension funds in the quarter is down to both security selection and overweight positions in the two asset classes of Swiss and foreign equities,” said Peter Leutenegger, vice president of marketing and sales of WM Performance Services in Zurich.
The median manager in the Swiss Balanced Universe returned 0.1% for the quarter, compared with benchmark returns of 0.7% for the InterSec Balanced Benchmark and 1.3% for the Pictet BVG/LPP index, WM Performance Services noted.
“Security selection was also the cause of downward trending by WM Performance Services’ two special mandate universes against their respective benchmarks for the fourth consecutive quarter,” the company added.
“The median manager in their Swiss Equities Universe returned negative 3% for the quarter, against the Swiss Performance Index (SPI) return of negative 2.6% - the 12-month return for both the universe and the index is 11.9%.
“The median manager in their Global Equities Universe was negative 2.3% for the quarter, well below the MSCI World index return of negative 1.2%.”
Mark Evans has been appointed as a director at Independent Trustee Services (ITS) to lead trustee appointments in London.
The Pension Protection Fund (PPF) is consulting on changes to the actuarial assumptions it uses in valuations in a bid to better reflect the bulk annuity market, with schemes set to move into surplus on aggregate.
Private sector defined benefit (DB) schemes were 96.3% funded on a Pension Protection Fund (PPF) compensation basis at the end of July, according to the lifeboat fund's monthly index.
Conduent has completed the sale of its actuarial and human resource consulting business to private equity investor, H.I.G. Capital.