As you probably know, many provident funds posted investment returns below the requisite minimum interest rate in 2007. Besides, many of those funds saw their actuarial funding ratio decline. Yet are you aware that the cash value of your liabilities has declined owing to increased long-term interest rates?

The SLIX Index shows the evolution of fair market value for a representative pensioner base. It can help you simply and efficiently assess your pension fund's actual financial situation over time. Knowledge of the true financial situation is vital to the decision-making bodies in the discharge of their managerial responsibilities.
As a leader in investment consulting and controlling, PPCmetrics AG can show you how to unlock valuable management data regarding asset and liability management as well as investment controlling from the SLIX Index. We work in full independence from product providers and can therefore provide our services free of any conflicts of interests whatsoever.

• The 2007 investment performance of many pension schemes was below average when compared over the long term. In the chart below, this development is represented by the low annual returns of the various investment indexes.
• The interest rates used to calculate the fair market value of liabilities rose during 2007. This meant a decline in the fair market value of pension liabilities. That trend is reflected by the decline in the SLIX Performance Index over the same period.
• Assessing the true financial situation of a pension scheme calls for knowledge of both the capital investments and the fair market value of liabilities.

Further information is available at www.slix-index.ch

Evolution of the SLIX Performance Index in 2007