SWITZERLAND - Swiss pension fund returns improved nearly 2% in the fourth quarter of 2004, outperforming the legal minimum requirement, according to Credit Swiss Asset Management (CSAM).
According to CSAM’s Swiss Pension Fund Index, pension fund performance rose from 101.36 to 103.3. If extrapolated to include all assets managed by independent Swiss funds, the absolute gain to pension funds was around CHF10bn (e6.41bn), SCAM said.
Over the duration of 2004, pension funds worth less than CHF1bn (e641m) made up the most ground, returning 2.21% against the minimum return levels set out by the BVG/LPP law.
Asset allocations and currency allocations changed relatively little in comparison to the third quarter of 2004. Foreign equity exposure increased by 0.7%, and liquidity rose 0.6% to 7.8%. The increased liquidity and equity weightings were made at the expense of bonds.
The CSAM Swiss Pension Fund Index is based on actual pension fund data.
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