Overview
| The Pictet LPP-Index was created in 1985 with the introduction of new regulations governing the investment of pension fund assets. Since then it has established itself as the authoritative pension fund index for Switzerland. Several adjustments have been made by launching new LPP-indices in 1993, 2000 and 2005. |
|
In 2000 a family of three indices has been introduced, to provide a suitable benchmark for Swiss pension funds. Although the allocation of the three indices may not exactly match the strategic allocation of a specific fund, one of them should come very close to the fund's risk profile and therefore be suitable as a benchmark. Already in 2000 the investment limits of the OPP2 were no longer considered to be absolutely binding. In the last years, appropriate investment instruments became available for alternative asset classes. This opened new investment possibilities to smaller pension funds. With the new Pictet Indices 2005 we will consider alternative asset classes as well as broader risk profiles such as small caps, high yields and emerging market bonds for the already existing asset classes. For the LPP 2005 we keep the family of the three indices and will rename the LPP-25, LPP-40 and LPP-60 by adding "plus". The LPP-25 plus, LPP-40 plus and LPP-60 plus will not reflect the percentage of equities any more but the risk profile in general. The LPP 93 and LPP 2000 will still be calculated. Innovations The innovations of the LPP 2005 are the following:
|
| |
