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Table 5 Global polynomial regression: Share of Equity Assets Related to the Funding Ratio

From: Swiss pension funds: funding ratio, discount rate, and asset allocation

Year   f(85) f(90) f(95) f(100) f(105) f(110) f(115)
2006 f(x) 28.4 27.2 26.0 19.4 23.1 26.1 28.6
  C.I. [20.0; 36.9] [21.8; 32.6] [22.4; 29.5] [17.6; 21.2] [22.0; 24.2] [25.5; 26.8] [28.0; 29.2]
2007 f(x) 24.4 25.7 27.1 20.5 23.4 25.7 27.7
  C.I. [15.4; 33.4] [20.1; 31.4] [24.1; 30.1] [19.1; 22.0] [22.5; 24.2] [25.2; 26.3] [27.0; 28.3]
2008 f(x) 27.1 24.8 22.4 19.2 18.0 17.2 16.7
  C.I. [25.9; 28.2] [24.1; 25.4] [21.9; 23.0] [18.0; 20.4] [17.3; 18.8] [16.2; 18.2] [15.4; 18.1]
2009 f(x) 29.9 28.8 27.7 22.4 24.9 25.8 25.5
  C.I. [25.3; 34.6] [26.0; 31.6] [26.5; 28.9] [20.9; 23.9] [24.2; 25.6] [25.0; 26.5] [24.6; 26.4]
2010 f(x) 27.7 27.8 27.9 25.9 25.7 25.6 25.5
  C.I. [23.8; 31.6] [25.4; 30.2] [26.6; 29.1] [25.0; 26.7] [25.1; 26.4] [25.1; 26.2] [24.8; 26.2]
2011 f(x) 26.2 26.4 26.7 23.9 23.6 23.4 23.1
  C.I. [23.1; 29.2] [24.6; 28.3] [25.8; 27.6] [23.1; 24.7] [23.1; 24.2] [22.8; 23.9] [22.4; 23.8]
2012 f(x) 27.0 27.5 28.0 25.3 25.3 25.4 25.4
  C.I. [21.5; 32.5] [24.3; 30.7] [26.5; 29.5] [24.4; 26.2] [24.6; 26.0] [24.8; 25.9] [24.8; 26.1]
2013 f(x) 40.2 35.4 30.5 22.4 26.3 28.3 28.9
  C.I. [35.1; 45.3] [32.4; 38.3] [28.8; 32.3] [20.4; 24.3] [25.6; 27.1] [27.7; 29.0] [28.2; 29.6]
2014 f(x) 30.9 30.0 29.0 23.0 25.4 27.4 28.9
  C.I. [22.1; 39.7] [24.4; 35.5] [25.9; 32.2] [21.0; 25.0] [24.3; 26.6] [26.7; 28.1] [28.3; 29.6]
2015 f(x) 34.6 33.2 31.9 24.6 26.7 28.4 29.7
  C.I. [25.5; 43.7] [27.4; 39.1] [29.0; 34.8] [23.0; 26.2] [25.8; 27.6] [27.8; 29.1] [28.9; 30.4]
2016 f(x) 28.7 29.5 30.2 25.6 27.7 29.3 30.5
  C.I. [22.6; 34.9] [25.6; 33.4] [27.4; 33.0] [24.1; 27.1] [26.9; 28.5] [28.8; 29.9] [29.8; 31.2]
2017 f(x) 36.2 32.7 29.2 21.9 25.7 28.9 31.3
  C.I. [21.9; 50.6] [23.8; 41.6] [24.3; 34.1] [19.7; 24.1] [24.5; 27.0] [28.2; 29.6] [30.6; 31.9]
  1. Point estimates (f(x)) for local average share of assets invested in equities (in percent), for different funding ratios (in percent). Estimates from global polynomial regression with separate number of polynomials for funds with a funding ratio of below, and above 100%, respectively. Confidence band (C.I.) in square brackets is from bootstrapped standard errors (500 iterations). The sample includes only private and public funds without state guarantees, and includes only funds with a funding ratio between 81.5 and 152.3% (0.5th–95th percentile range)