Switzerland's Versicherungskasse der Stadt Zurich (Zurich civic pension fund) is to increase its non Swiss equities brief as part of a review of the entire CHF12bn (US$6.7bn) fund.
Armin Braun, chief executive of the fund said that the existing CHF2.4bn non-Swiss equities portfolio would be increased but could not say how much by at this stage.
The result emanates from an asset liability modelling (ALM) study started at the beginning of the year.
Commenting on the review Braun said: “Our investment committee has decided on two or three ways in which we will go on, but it is not yet decided what our final asset strategy will be.”
According to Braun the funds will be transferred from other asset classes within the overall portfolios, although he could not confirm whether this would be from Swiss equities.
He added that the fund may include timberland in its private equity and real estate portfolios.
The current asset allocation stands at fixed-income 50%; non-Swiss equities 20%; Swiss equities 17.5%; private equity 2.5%; commodities 2.5%; hedge funds 2.5%; real estate 2.5%. All are specialist mandates and held by external managers.
ECOFIN Consulting and incumbent actuary Olivier Deprez are advising.
Full results from the study are expected in December
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