SWITZERLAND - Swiss pension funds have seen a decline in returns for the second quarter with portfolios returning -1.1%, according to research by the performance measurement company InterSec.
The company found that the pension funds had underperformed the InterSec Balanced Benchmark (IBB) at –1%. The Pictet BVG/LPP index for Q2 2004 returned –1.4%.
Peter Leutenegger of InterSec Switzerland said: The relatively strong overweight in foreign equities in the universe versus the underlying weight in the IBB led to higher losses than the index, but they were balanced out by underweights in foreign bonds in Swiss francs and foreign bonds, which both had worse returns than the equities asset classes this quarter.
InterSec said that the negative trend could also be seen in its special mandate universes as they returned their worst figures for more than a year.
The median manager of InterSec's Swiss equities universe returned 1.8% for the quarter, while the annualised return figure for one year is still at 20.4%.
The quarterly return of the median manager in InterSec's global equities universe was -1.8% for Q2 2004 and clearly underperformed the MSCI World at -0.4% primarily due to stock selection, the company said.
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