SWITZERLAND - A slight dip in Q4 performance did not stop Swiss pension funds reaching the highest annual returns since 1997, according to WM Performance Services Swiss Balanced Universe.
The median manager in the Universe returned 2.6% for Q4, down from 3.9% the previous quarter. Results for the year overall were far more promising, achieving a 13.3% return - its highest annual return since 1997 – against benchmark returns of 14.4% (WM Swiss Balanced) and 10.4% (Pictet BVG/LPP).
Credit Suisse also published its Swiss Pension Fund Index, which performed “most satisfactorily” in the Q4 with an increase of or 2.4%. CS said it represented the sixth consecutive quarter in which the index had performed positively.
Equities also enjoyed a bullish year, with an annual performance of 12.62%. Pillar 2 assets of Swiss pension funds achieved growth of around CHF15bn in Q4 2005, rising to a total of CHF575bn.
That meant a year-on-year growth for Pillar 2 assets of a good CHF 65 billion, according to CS.
Peter Leutenegger, vice president, marketing and sales for WM Performance Services said the Swiss pension fund 2005 performance was excellent. “Performance was basically in line with the strong showing of equity markets last year and helped many struggling Swiss pension funds claw back a significant amount of the ground lost in previous years,” said Leutenegger.
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