Swiss pension fund GastroSocial has increased its private markets allocation to 33% of its CHF11bn ($12.5bn) portfolio, as part of a strategic shift to enhance long-term returns and reduce exposure to short-term market volatility.

The revised allocation includes 9% each in private equity, private debt, and infrastructure, alongside 5% in international real estate and 2% in insurance-linked securities. This marks a notable rise from the fund’s previous 25% allocation to private assets.

Chief Investment Officer Beat Wüst said the pivot reflects a broader trend among Swiss institutional investors and underlines the resilience of private markets. “Private market investments help stabilise the pension fund’s portfolio because specialist managers can implement strategic improvements that partially decouple company performance from the economic cycle,” he noted.

The move comes amid geopolitical headwinds, particularly heightened uncertainty over US policy, which has weakened confidence in American equities and bonds. As a result, GastroSocial has consolidated its listed equity strategies and reduced its overall bond exposure. Learn more about private equity strategies in Switzerland by joining the Swiss Private Equity Conference in Zurich. 

Despite market turbulence, the fund reported a -0.15% return in April, outperforming its benchmark, and returned to positive territory by mid-May. GastroSocial plans to continue optimising returns through opportunistic private market allocations while maintaining a cautious outlook.

Source: IPE

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