SWITZERLAND - After a year of consolidation the average Swiss Pensionskasse has fallen below a 100% funding level, calculates Swisscanto. 

Looking at a sample of 419 institutions from the AWP/Complementa Risiko Check-up and the Swisscanto Pensionskassen survey the asset manager noted a reversal of the 12-month upward trend in funding levels. 

Swisscanto stated: "Per June 30 the average asset weighted funding level dropped from 100.5% in the previous quarter to 97.7%."

Private pension funds managed to just stay above the 100% mark dropping from103.8% to 101% while public pension funds remained underfunded at 91.2% (down from 93.7% in the previous quarter). 

Swisscanto noted that a negative performance in the second quarter cancelled out positive returns of the first quarter 2010 bringing the half-year performance to just 0.2%.

Overall one quarter of all Pensionskassen was underfunded at the end of the second quarter: 70% of public and 20% of private pension funds.