SWITZERLAND - Only half of Swiss pension funds are hedging their currency exposure, according to Lusenti Partners' Swiss Institutional Survey.
Some 40% of respondents did not take any action to hedge against the US Dollar, 48% did not hedge against the Euro and 62% did not feel it necessary to manage their positions in other currencies.
Where action was implemented, it was either delegated to outside briefs and fund managers and actively managed under a currency overlay program or in the form of occasional and opportunistic hedging.
The survey also showed most pension funds made few tactical decisions, but were disappointed by the results. However, pension funds preferred specialised management by asset class over balanced management.
At a time of falling markets over half (55%) of institutions took tactical action which featured either overweighting or underweighting asset classes.
However, automatic rebalancing, was applied by 28% of respondents, while 22% increased their cash positions and 20% preferred to sit tight and take a passive approach.
Only minorities changed their strategic allocation (9%), changed managers (10%), or hedged via derivatives (15%) or guaranteed-capital structured products (7%).
Enhanced powers for The Pensions Regulator (TPR) to prosecute and fine company directors who "wilfully or recklessly" put their defined benefit (DB) pension scheme at risk will be hard to enforce, commentators say.
Melrose has pledged to contribute up to £1bn to GKN's pension schemes as part of a final offer to acquire the engineering business.
Existing master trusts will be forced to pay £41,000 when applying for authorisation under the upcoming regime, the government has confirmed.
UPDATE 2 - DWP publishes DB white paper: Stronger powers for TPR, DB chair statements to be introduced
The Pensions Regulator (TPR) will be given the power to fine company bosses who deliberately puts their defined benefit (DB) schemes at risk, the government has confirmed.