SPAIN - Assets under management of Spanish pension funds suffered a 3.75% year-on-year decline due to market performance and reduced members' contribution, data by the Inverco reveal.
This data reflects a decline of €3.1bn (US$4.4bn) from June 2009, which was partially offset during the first half of 2009 by improving market conditions.
Inverco said in the first six months of this year total AUM grew by 0.1%, reaching €78.5bn.
Spanish pension funds are mainly invested in national securities, with 29% of the overall assets invested in national corporate bonds, 18% in government bonds and 8% in Spanish stocks.
Fifteen per cent is invested in foreign fixed income instruments and 8% in foreign stocks.
Last year, the average weighted performance of the funds was -2.11%, with only the short and long term fixed income allocations producing positive results.
Inverco - the association of national pension funds and institutions of collective investment - said the performances on all assets held by Spanish pension funds improved from the end of December 2008 mainly due to "good market behaviour" and that these results could be considered as "very satisfactory".
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