SWITZERLAND - The Swiss CHF2bn (€1.23bn) PKG Pensionskasse, the independent pension fund for small and medium-sized enterprises, booked a 2% investment return in 2007, maintaining its cover ratio.

The fund's results contrasted with its 6.6% return in 2006, though the scheme commented: "PKG's last financial year was influenced by the financial crisis and the turbulences at the stock exchanges at the end of the year."

Presenting its 2007 results, the Luzern-based fund also said it has been able to maintain a cover ratio of 115.6%.

The 2% return is below the minimum Pension Fund Act basic rate return, which for 2007 was set at 2.5%.

Earlier this year, a study by Lusenti Partners found nearly half of all Swiss pension funds delivered performances which were below these 2.5%. (See earlier IPE story: Swiss pension funds underperformed in 2007)

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