CPEG, the CHF23bn (€24.5bn) pension fund for the canton of Geneva, has raised its equity allocation to 30% of total assets under a revised strategic asset allocation implemented in 2024, according to its latest financial statement.
The shift marks a significant increase from the previous 24.1% allocation, with the fund favouring US equities in its latest round of investments. To support the expansion, CPEG appointed new asset managers, including one for a passive mandate and another for an active strategy.
Among the new managers, Amundi emerged with a North American equity mandate, while Banque Cantonale de Genève, Pictet Asset Management, Dimensional Fund Advisors, and Ethos/Pictet were also listed as equity managers in the fund’s 2024 report.
The repositioning has led to a sharp increase in exposure to North American equities, which now represent 10.5% of total assets – approximately CHF2.4bn – up from 4.9% the previous year.
European equity exposure remained steady at 5.5%, while Swiss equities rose modestly to 9.3% from 8.5% in 2023. In contrast, emerging market equity holdings fell to 2.5%, from 3.6% a year earlier.
CPEG’s move comes as some peers in the DACH region reassess equity risk, with several pension funds reducing exposure to passive, market-weighted global equity strategies or underweighting US equities altogether in response to geopolitical and macroeconomic volatility.
By contrast, CPEG has increased risk exposure despite what it described as a volatile environment, citing long-term strategic objectives as the rationale.
The equity build-up has been funded by trimming emerging market bond holdings, which the fund said have delivered disappointing performance for several years.
In addition, CPEG flagged concerns over the ESG credentials of emerging market debt, noting that the asset class falls short of its standards for carbon footprint and alignment with the Paris Agreement’s temperature goals.
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Luigi is IPE's Berlin-based DACH correspondent.
His coverage includes regulation and the latest pensions and investments trends, and, being a native Italian, he also covers Italy’s pensions market.
He has reported from Italy and Germany on international politics and business for European and US publications including USA Today, Bloomberg BNA and for the investigative magazine L’Espresso. He was previously Germany correspondent for Mergermarket covering M&A.View full Profile
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