SWITZERLAND - Swiss social security fund, the CHF20bn AHV, is shortlisting for a new global semi-passive bond mandate.
The decision follows a recent investment committee meeting which decided against tendering for several specialist fixed-income briefs.
AHV has not determined the size of the brief, although the initial figure touted was CHF500m. The fund said it will be benchmarked against the Lehman Global Aggregate index. Tenders will be invited during the next two weeks. Names of candidates were not disclosed at this stage.
Currently, the fund uses JP Morgan Fleming Asset Management and Swissca to handle its global bond portfolio. JP Morgan oversees CHF200m, Swissca holds two mandates totalling CHF950m.
The move is part of a reshuffle of the fund’s investment strategy, to be implemented in full next year. The new allocation will see 32% in global equity; 8% Swiss equity; 40% Swiss bonds; 15% global bonds; and 5% real estate.
Currently, figures stand at 70% Swiss fixed-income products (including money markets); 13% Swiss equities; 10% international equities; 6% overseas fixed-income; 1% Swiss indirect real estate.
AHV is advised by ECOFIN.
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