SWITZERLAND - Swiss pension funds have posted positive results for 2003, on the back of a strong performance from the equities portfolio.
A performance comparison conducted by Watson Wyatt on behalf of the Swiss Association of Pension Funds (ASIP) showed that for the first time since 1999, global equity markets registered positive returns with the median return on global equity mandates for 2003 at 19.1% . This compares with returns of 19% for the MSCI World Index.
The median return for global equities during the second half of 2003 was 9.9%, with the benchmark returning 9.2% during the same period.
“Three-quarters of all pension funds had a higher return than the index. Active management was rewarded very well during this period,” said Watson Wyatt.
Swiss equities performed significantly better than global equities, returning 21.7% for 2003 and returned 14.7% during the second half of 2003, slightly trailing their benchmark, the SPI.
Consolidated securities returned 9.5% during 2003.
The median returns for foreign bond mandates during 2003 was 5.4% and 90% of all returns were between 0.4% and 10.8%.
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