SWITZERLAND - The CHF5bn Bernische Lehrerspensionskasse (Berne public pension fund for teachers) could outsource up to 50% of its assets early next year.
The fund currently manages capital in-house, and the pension fund investment committee is still in discussion on which asset classes to outsource, said managing director of the fund, Hans-Peter Sieber.
He added that the fund aims to outsource by spring next year, but would not be anymore specific. Sieber confirmed that the the fund is looking for further risk diversification - the conclusion of two asset liability modelling (ALM) studies carried out at the start of this year.
The fund will create a 5% indirect real estate mandate, pulling assets from one of its fixed income portfolios. The fund is also considering a move into hedge funds.
Sieber said that the committee will have more details on fund direction by year-end.
Current asset allocation stands at 35% in Swiss bonds, 10 % in global bonds, 2% in private equity, 5 % in direct Swiss real estate, 4.5% mortgages, 36 % international equities, (incl Swiss equities), with the remainder held in cash.
The ALM studies were conducted by Dr Claude Schuard in Berne and Complenta in Saint Gal.
By Madhu Kalia
Mark Evans has been appointed as a director at Independent Trustee Services (ITS) to lead trustee appointments in London.
The Pension Protection Fund (PPF) is consulting on changes to the actuarial assumptions it uses in valuations in a bid to better reflect the bulk annuity market, with schemes set to move into surplus on aggregate.
Private sector defined benefit (DB) schemes were 96.3% funded on a Pension Protection Fund (PPF) compensation basis at the end of July, according to the lifeboat fund's monthly index.
Conduent has completed the sale of its actuarial and human resource consulting business to private equity investor, H.I.G. Capital.