SWITZERLAND - The CHF4bn(e2.6bn) Basellandschaftlische Pensionskasse (BLPK) is set to cut its fixed income allocation and increase its exposure to real estate to CHF1.1bn.
Roland Weiz, head of investments at the public authority fund said that the changes in the investment structure were on the back of an ALM study conducted by consultants Aon.
“We will have firmed up our strategy on real estate investments by the end of the year. Currently most of our investments in real estate are through a real estate outsourcing company called Adimmo, where we hold a 60% stake. Adimmo will continue to manage our real estate investments,” said Weiz.
The fund has around 20% of its portfolio or about CHF850m in real estate, which will be increased to 25-30% over the next couple of years.
BLPK also plans to hike its exposure to direct real estate. The fund has two-thirds of its investments in indirect investments, while one-third is in direct investments.
Weiz said that the fund was also considering increasing its allocation to hedge funds. The fund invests around 2.2% of its assets in the asset class.
Asset allocation of the fund stands at around 34% equities, 41% fixed income, 5% alternatives and 20% in real estate.
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