Switzerland's AHV to invest in US, European property funds
AHV is looking to invest in European and US real estate on the back of below-average returns last year.
Switzerland’s CHF30bn (€24.4bn) first-pillar pension fund is looking to the core and core-plus segments of both continents.
An exclusively European €15m-20m pooled fund is being targeted with a maximum 50% leverage ratio.
AHV is looking for stabilised, income-producing real estate assets.
A pooled $20m-40m (€14m-28m) US fund should have the same credentials, it said.
AHV, which also manages invalidity compensation scheme IV (CHF4.7bn) and military service/maternity leave scheme EO (CHF600m), returned 2.8% last year, below the Swiss national average of 6%.
As per year-end 2013, the fund had 5% invested in real estate, with 52% in mainly domestic bonds, 13% in loans and 26% in equities.
The remainder was commodities (2%).