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Compenswiss lines up non-core fund investments

The investment arm for Switzerland’s three federal social security funds has put out RFPs for value-add and opportunistic mandates in the US, Europe, Asia and globally.

Compenswiss, the investment manager of The Swiss Federal Social Security Funds, is plotting investments in value-add or opportunistic real estate fund strategies across the globe.

The investor, which manages assets of Switzerland’s Federal Old Age and Survivors' Insurance (AHV), the Federal Disability Insurance (IV) and the Income Compensation Scheme (EO), has issued request for proposals (RFPs) for European, Asian, US and global mandates.

Compenswiss is looking to make $10 million to 20 million investments in several funds, over several vintage years. Compenswiss will only invest in funds of at least $500 million with a target leverage not exceeding 75 percent. The fund should also be at least the second that the manager has launched with the same strategy.

The investor will make its final manager selections in Q1 2017.

Compenswiss is not the first Swiss investor this year to signal its intention up its exposure to the asset class. In July, Publica, Switzerland’s largest public pension fund, announced it planned to dip its toes into the global real estate market for the first time. The €34.1 billion institution, which manages 20 pension plans, said it plans to establish a 4 percent allocation to foreign real estate on top of its existing domestic portfolio, which is made up of approximately 70 assets. Publica has stated it intends to invest mainly in core assets, but will accept a 10 percent allocation to foreign real estate.