The graph shows simple value indices, rebased to 100 at the end of 1999, or the start of published data records, if later.
Shown is the performance of the pension fund relative to two yardsticks: Pictet LPP40 and the Credits Suisse Pension Fund Index.
Success and Failure
Column charts represent the yearly performance differentials between the pension fund and two yardsticks: the most congruent benchmark index (red) and the Credit Suisse Pension Fund Index (grey). The box to the right shows the number of years (count) and frequency (percentage of frequency) of positive, or negative performance differentials.
This simple yet powerful analytical tool reveals patterns of investment success, or failure, and the consistency, or lack thereof.
Regression Analysis Closest Match
Here, the pension fund’s annual rates of change and those of the most ‘congruent’ (highest value for ‘R-squared’) of available benchmark indices are shown in a scatter diagram to the left. This particular benchmark was chosen purely because it has the highest congruency. This will not necessarily correspond to the benchmark which that pension fund uses as its yardstick.
The graph shows all actual pairings of returns. In addition, the table to the right shows, based on the regression formula, hypothetical return expectations for the pension fund for a given benchmark performance, calculating the estimated surplus, or shortfall in performance under that specific scenario.
Regression Analysis Peer Performance (CSPF Index)
Here, the pension fund’s annual rates of change and those of the Credit Suisse Pension Fund Index are shown in a scatter diagram to the left. ‘What-if’ projections estimating hypothetical return expectations for any given performance of the peer group are shown in the table to the right of the scatter diagram.