SWITZERLAND - The CHF20bn (EUR13.2bn) Swiss social security fund (AHV) could tender for a CHF500m global bond mandate by March 2002.
Dominique Salamin head of the Geneva-based fund said: “The fund may look to tender CHF500m for global bonds by the end of the first quarter 2002.”
AHV is also to tender an active CHF500m global equity mandate by December, and could also outsource up to another CHF1.8bn next year following a review of investment strategy.
The moves stem from the Swiss Confederation giving the green light earlier this year to public pension funds to invest up to 100% in foreign equities.
In February,Salamin told IPN that the fund was targeting a 20% allocation in global equity - an increase of 5%.
He told IPN then that the new overall strategic allocation - to be implemented over the next three to four years - would be 20% global equity; 15% Swiss equity; 40% Swiss bonds; 15% global bonds; 5% alternatives; and 5% real estate.
The present allocation stands at 65% Swiss fixed-income; 14% Swiss equities; 15% international equities; 5% overseas fixed-income; 1% Swiss indirect real estate
The pension fund also plans to cut its internally managed Swiss fixed income allocation from CHF12.4bn to CHF11.4bn next year and will get an additional CHF1.3bn, which is likely to be invested in alternatives and global bonds.
Salamin declined to give further details on any additional strategic moves.
Incumbent consultants ECOFIN is advising.
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