Swiss pension fund exploring options for CHF2.1bn equity overlay strategy

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A Swiss pension fund is seeking managers or advisers to help run an equity derivatives overlay strategy worth up to CHF2.1bn (€1.9bn), via IPE Quest.

Search QN-2543 is being conducted by a consultant on behalf of the unnamed pension fund, which wants to be able to reduce its equity exposure during “substantial equity market setbacks”.

The strategy is designed to “dynamically reduce or increase the equity exposure within [the] client’s overall asset allocation” using derivatives, according to the investor’s definitions.

The pension fund is looking to award up to three mandates covering between CHF700m and CHF2.1bn of equity assets across developed and emerging markets, as well as a specific Swiss equity allocation.

The benchmarks are MSCI World, MSCI Emerging Markets and the Swiss Performance Index. Managers or advisers bidding for the mandate should state performance gross of fees to 30 April 2019.

The investor wants an active systematic strategy. Managers should be authorised to provide services to Swiss pension funds, and overlay programmes should be “strategic for your company”, the investor said.

The pension fund also requires managers to sign a client-specific management agreement, and to be able to report on regional exposures with and without the overlay, as well as excess return and performance contribution.

The deadline for submissions is 5pm UK time on 17 June.

The IPE news team is unable to answer any further questions about IPE Quest, Discovery, or Innovation tender notices to protect the interests of clients conducting the search. To obtain information directly from IPE Quest, please contact Jayna Vishram on +44 (0) 20 3465 9330 or email

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