SWITZERLAND - The CHF20bn Swiss social security fund (AHV) has longlisted for two global equity mandates totalling CHF1bn and has put its search for alternative investments on hold for at least another year.
The Geneva-based fund is currently sifting through managers for a CHF500m US small-caps mandate, and a CHF500m European small or mid-caps brief. An appointment is aimed for March 2002.
But Dominique Salamin, head of the Geneva-based fund, said the process concerning the 5% allocation to alternatives had been postponed until next year due to a lack of funding. He added that AHV was also undecided as to what direction any investment in the asset class would take.
In August, Salamin revealed that AHV would tender for a CHF500m global bond mandate by March 2002 and could outsource an additional CHF1.8bn. He said that the fund was still planning to press ahead with these arrangements, although the March tender date may now be extended.
The new overall strategic allocation - to be implemented next year - is 32% global equity; 8% Swiss equity; 40% Swiss bonds; 15% global bonds; and 5% real estate.
The present allocation stands at 70% Swiss fixed-income products (including money market instruments); 13% Swiss equities; 10% international equities; 6% overseas fixed-income; 1% Swiss indirect real estate.
Incumbent consultant ECOFIN is advising.
By Madhu Kalia
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