Swiss investment consultancy Lusenti Coninco Anlageberatung is seeking to strengthen its position among large Swiss pension funds as institutional investors increase allocations to complex investment strategies and private markets.
Ilir Roko, chief executive officer of the newly created consultancy, told IPE that developing bespoke services for larger pension funds is a key long-term objective.
The firm was formed following the acquisition of a majority stake in Lusenti Partners by Olivier Ferrari, founder of Coninco Explorers in Finance, and his family.
Following the transaction, announced on 1 May, Roko was appointed CEO and partner of the new firm, which employs a team of 16.
The consultancy’s client base consists primarily of second-pillar public and private pension funds.
According to Roko, Swiss pension funds face challenges on multiple fronts, including geopolitical tensions, market volatility, regulatory requirements, ESG considerations and pressure to achieve investment returns.
At the same time, investment portfolios are becoming increasingly sophisticated, particularly through greater exposure to private markets, he added.
Large pension funds are increasingly able to invest directly in alternative assets, while smaller and medium-sized schemes tend to rely on other investment structures, he said.
“In terms of unlisted assets, we have the tendency of growing exposure to private assets, which requires a stronger governance, risk control, and in this context, you also need to have a critical size to build up the services that are required by the clients,” Roko noted.
He added that the consultancy intends to respond to growing demand for more sophisticated advisory services.
Synergies and consolidation
The merger between Lusenti Partners and Coninco creates a firm with a strong presence in Switzerland’s French-speaking market, particularly among small and medium-sized pension funds.
According to Roko, Coninco contributes expertise in asset allocation, active management, fund selection and ESG research, while Lusenti brings capabilities in balanced mandates, manager oversight, index management and quantitative research.
“We have built over time tools for optimisation techniques for asset and liability management (ALM) studies, and in general, quantitative tools,” he stated.
The new entity separates its institutional advisory business from its asset management activities focused on impact investment solutions.
The merger comes amid continuing consolidation in the Swiss pensions sector. The number of Swiss pension funds fell by around one-third to 1,300 by the end of 2024, according to research by the Institute of Financial Services Zug (IFZ) at Lucerne University of Applied Sciences and Arts.
Last year, Vaudoise Assurances acquired Ecofin Investment Consulting, following its earlier acquisitions of Pittet Associés and Prevanto, as part of efforts to strengthen its position in the institutional pensions market.
