Interpens can exclusively reveal that the CHF20bn Swiss social security fund (AHV) has awarded two new global equity mandates.
UBS Asset Management has won a CHF1bn passive mandate to be benchmarked against the FTSE World Index and State Street Global Advisors has won a CHF500m passive mandate to be benchmarked against the Dow Jones Sustainable Index.
The AHV has been in the tendering process since the Swiss social security gave the fund the green light to invest in foreign equities in February - a story exclusively reported by Interpens on 5 February 2001.
The initial tender was for three mandates, for which eight undisclosed candidates were shortlisted. According to Dominique Salamin, head of the Geneva-based fund, the decision to go with two managers was a due to a “question of fees”.
As a result of the move, seven asset managers have lost their mandates from the original manager list. Those that lost mandates are IAM (CHF109m), Pictet (CHF279m), Sarasin (CHF172m) and UBP (CHF191m) - active Swiss equity; and ABN Amro Asset Management (CHF123m), Credit Suisse (CHF122m) and Zurich Scudder (CHF120m) - global bonds.
The active Swiss equity mandates retained are Julius Baer (CHF300m), Lombard Odier (CHF286m), Vontobel (CHF167m), and ZKB (CHF400m). Passive Swiss equity retained are Credit Suisse (CHF943m), Pictet (CHF580m), and SSgA (CHF565m). Global bond mandates retained are JP Morgan (CHF200m) and Swissca (CHF647m). Rud Blass also retained a real estate mandate (CHF209m).
The new strategic allocation - to be implemented over the next three to four years - gives a mix of 20% global equity; 15% Swiss equity; 40% Swiss fixed-income; 15% global fixed-income; 5% alternative investments; and 5% real estate.
AHV was advised by ECOFIN.
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