SWITZERLAND - The number of under-funded Swiss pension funds has gone down from 19.8% in 2002 to 11.9% in 2003, according to a survey of Swiss Federal Office for Social Security – BSV.

In its annual survey of the coverage ratio of pensions providers, the BSV said that thanks to the “positive developments of the financial markets” pension providers are now in better shape.

In 2002, 886 of the polled institutions like pension funds and insurers were underfunded, while according to the 2003 survey, the ratio has gone down to 431.

But the situation “remains at any rate tense”, the BSV has warned, as many pension funds, even if fully funded, would not be able to cope with variations of the stock markets.

The BSV cites a survey by Complementa Investment-Controlling AG, which said at the end of 2003 that 55% of private pensions providers had a “reduced risk capacity”.

In 2003 pension providers’ deficit amounted to 25.3 billion Swiss francs (16.5 billion euros). One third of which, nine billions, depends on pension funds not covered by the State Guarantee, which makes the state liable to pay for the difference to full funding levels.

The BSV survey also reveals that things have been improving for life-insurers, after “significant losses of the last years”. “At any rate a few companies are still making losses and we cannot talk of any all-clear sign,” the BSV said.

Separately, Credit Suisse has announced it is going to create a separate line of business for its asset management services.

Different lines of business for private, corporate and investment banking clients are also going to be set up, as “clients require increasingly sophisticated services,” said chief executive Oswald Grubel.

The Swiss group said it would integrate its markets arm Credit Suisse First Boston within the next two years.

“Such a process needs time and will not be achieved overnight. We will implement our plans as soon as possible, taking great care to avoid any disruption to our client services” Grubel added.

Credit Suisse also said it would float its Winterthur insurance arm.