SWITZERLAND - The pension funds covered by the Credit Suisse Pensionskassen index reported a combined loss of 0.4% for the first half of 2011 despite a positive start to the year.

In the second quarter, the index gained 0.46% in April but then lost 1.18% and 0.5% in June and May, respectively - which adds up to a loss of 1.22% for the second quarter.

Combined with the 0.81% reported for the first quarter, this results in a loss of 0.4% for the first six months.

Credit Suisse noted that the main causes for the negative return in the second quarter were foreign equities (-1.32%), foreign debt (-0.41%), domestic equity (-0.23%) and alternatives (-0.22%).

Respecting asset allocation, the liquidity quota increased to 7.2% from 6.9% quarter-on-quarter, but was still below the 7.3% recorded year-end 2010.

Domestic bond exposure, having fallen slightly in the first quarter, returned to 26.2%, which is where it had stood at the beginning of the year.

All other asset classes remained virtually unchanged over the first six months, with foreign equities at 16.8%, foreign debt 8.5%, domestic equity 12.2% and alternatives 5%.