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Amendments were adopted to the Requirements to advertisements and written information materials of pension funds and pension companies pursuant to the Social Insurance Code (SIC)
23.03.2009

The deputy chairperson of the Financial Supervision Commission responsible for the Social Insurance Supervision Division adopted Decision No 278- PIC which amended the Requirements to the advertisements and written information materials  of pension funds and pension companies under art. 123i, para 2 and art. 180, para 2, item 1 and item 2 of the Social Insurance Code (the Requirements).
The current objective circumstances related to a persistent decrease of the return of the supplementary pension funds and negative realized return for 2008 imposed reconsideration of the indicators for determining and disclosure of the achieved investment results from supplementary pension fund management and the use of the Sharpe ration in particular. In periods when the return from the asset management is lower than the determined risk-free rate, the Sharpe ratio is negative. If two funds have achieved the same return, lower than the risk-free return, the Sharpe ratio for the fund with the higher standard deviation (i.e. higher risk) is higher. In such cases, the use of the Sharpe ratio is treated in different manners in specialized literature and in the investment circles and its use may be misleading for the fund members.
Given this and in accordance with the amendments to the Requirements, the Sharpe ratio will be disclosed only if the nominal return from management of the respective supplementary pension fund is higher than the risk-free return for the period for which the investment results are disclosed.

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