Now Reading: Pictet LPP indices

Select your investor profile:

This content is only for the selected type of investor.

Pictet LPP indices

Since 1985, Pictet Asset Management has been publishing indices measuring returns on portfolios that are representative of investment strategies pursued by Swiss pension funds. The indices are identified by the numbers 25, 40 and 60, which coincide with the percentage of equities held and which in particular indicate the risk profiles of the LPP families launched in the years 2000, 2005 and 2015. Find out more about the three Pictet indices families below:

01

Introduction and access data

These indices are designated with the acronym of LPP, a reference to the Loi sur la prévoyance professionnelle (Swiss Federal Law on Occupational Retirement Survivors’ and Disability Pension Plans), which came into force in 1985.
For pension fund managers, choices on strategic allocation are among the most significant active management decisions they make. – Dominique Salamin, Product Manager

The LPP indices were subsequently adjusted several times, in 1993, 2000, 2005 and 2015. Since then, they have been regarded as benchmark indices in the Swiss pension fund sector.

Access daily valuation of the indices here:

Pictet LPP 2000, Pictet LPP 2005, Pictet LPP 2015

02

Pictet LPP Indices 2000

The introduction of the Pictet LPP Indices 2000 allowed the requirements of numerous pension funds to be taken into account through the publication of three risk profiles.

Access daily valuations of the indices here:

Pictet LPP 2000

COMPOSITION OF THE PICTET LPP 2000 INDICES
The table below shows the weightings of the three indices
LPP2000_Weights.png

Source: Pictet Asset Management

Key points

The innovations of the Pictet LPP Indices 2000 include:

  • The investment limits of the OPP2 (Swiss Federal Law on Occupational Retirement Survivors’ and Disability Pension Plans) are not binding;
  • The equities portion of two of the three indices are considerably higher;
  • The equity investments are broadly diversified;
  • For foreign currency risks a clear distinction is made between equities and bonds;
  • EURO bonds represent a new investment category;
  • Foreign equities now also include emerging markets;
  • The bond indices now contain both government and corporate debt paper.
 

03

Pictet LPP Indices 2005

The Pictet LPP Indices 2005 introduced alternative investment categories (hedge funds, private equity) and used broad indices for the traditional categories, including emerging country debt and high yield bonds, as well as emerging markets and small cap companies for equities.

Access daily valuations of the indices here:

Pictet LPP 2005

COMPOSITION OF THE PICTET LPP 2005 INDICES
The table below shows the weightings of the three indices
LPP2005_Weights.png
Source: Pictet Asset Management

Key points

The innovations of the Pictet LPP 2005 are the following:

  • Equities World are more broadly diversified by including small caps
  • Bonds World include high yield and emerging market bonds
  • Real Estate Switzerland and World are included
  • Hedge Funds are included
  • Private Equity are included
  • Foreign currency risk for Bonds World and Hedge Funds is hedged into CHF

04

Pictet LPP Indices 2015

The family of Pictet LPP Indices 2015 offers strategic allocations that are efficient to implement. These indices feature explicit allocations to specific investment categories such as emerging debt, corporate bonds in euros, small cap equities, Swiss real estate and absolute return strategies.

Access daily valuations of the indices here:

Pictet LPP 2015

Composition of the Pictet LPP 2015 Indices
The table below shows the weightings of the three indices
LPP2015_Weights.png
Source: Pictet Asset Management

Key points

The Pictet LPP 2015 indices differ from the Pictet LPP 2000 and 2005 indices in the following ways in particular:

  • Reduced bond weighting in favour of Swiss real estate and "absolute return" strategies with potential for more favourable long-term returns.
  • Within bonds, reduction in the home country bias relating to Swiss franc bonds in favour of three well-defined segments: sovereign issuers in the developed countries, emerging market debt in local currency, and corporate bonds in euros.
  • Within international equities, addition of small caps to the allocation grid.
  • As previously mentioned, addition of Swiss real estate and "absolute return" strategies in order to benefit from additional risk premia and significant diversification effects.
  • Hedging of foreign currency risk relating to bonds ex emerging debt and to "absolute return" strategies.

05

Method of calculation

How we calculate the performance

To calculate the performance, weightings are rebalanced or adjusted at the end of every month (meaning that, at the start of the month, the original portfolio structure is "restored"), whereas during the course of the month, a buy-and-hold strategy is adopted. 

Since the data received from our providers may change retrospectively, we calculate the LPP indices in the following manner.

Each day, the daily performances of the LPP indices for the last 3 months are re-calculated using a 3-month history of the sub-indices. Thus, we ensure that LPP-indices and the underlying sub-indices are consistent.

This procedure implies that there may be changes in the data already published.

Therefore, we kindly advise you to always check our most recent data before using any previously downloaded performance history.

 

06

Codes of the sub-indices

Pictet LPP 2000 Indices

CODES OF THE SUB-INDICES Pictet LPP 2000 Indices
LPP2000_Codes.png
Source: Pictet Asset Management

Pictet LPP 2005 Indices

CODES OF THE SUB-INDICES Pictet LPP 2005 Indices
LPP2005_Codes.png
Source: Pictet Asset Management

Pictet LPP 2015 Indices

Codes of the sub-indices Pictet Lpp 2015 Indices
LPP2015_Codes.png
Source: Pictet Asset Management

07

Contacts

Pictet LPP indices 

If you have a question about our indices, please contact us.

08

Disclaimer

Pictet LPP indices are a combination of underlying indices for which Pictet assigns, sets and reviews the weights. Under the Regulation (EU) 2016/1011 (the ‘Benchmark Regulation’) this is not considered the provision of a new benchmark but is only to be interpreted as a use of the underlying indices. Pictet LPP indices are not available for use by third parties within the European Union and are only available for use in Switzerland.