SWITZERLAND - The Pensionskasse for the city of Zurich (PKZH) and the Profond multi-employer fund say they have no plans to change their strategic asset allocation in the near future, after achieving strong returns in 2009.
The PKZH managed a return of 10.7% last year while Profond saw its performance figures soar to 18.4%.
The Zurich fund told IPE it did increase its funding level from 104.7% to 112% last year, however, Profond remains slightly underfunded at 92.4%, despite the strong gains, but up from 84.2%. (See earlier IPE story: One in four Swiss plans are underfunded - Swisscanto)
“We have a long-term strategy in place which brings enough return to allow us to meet our liabilities,” said Herbert Brändli, president of the Profond Pensionskasse.
The CHF2.8bn (€1.9bn) fund suffered a 25.7% loss in 2008 with an equity quota of more than 50% but Brändli said the fund will stick to its strategic asset allocation.
Similarly, Vera Kupper-Staub, head of the CHF12.8bn PKZH, reiterated comments made during the financial crisis and pointed out no changes were planned. (See earlier IPE story: PKZH suspends rebalancing on solvency drop)
She said the equity quota had been gradually increased again last year as the funding situation got better. The fund’s strategic quota is to hold 40% in equities, 43% in bonds and the rest in alternatives and real estate.
Kupper-Staub also stressed that risk management on all levels, be it the strategic, the tactical or the operative level, is vital and “continuously has to be improved”.
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