Danilo Follador

MPK is a conservative, long-term manager which diversifies investments across asset classes, regions and economic sectors. The Board of Trustees is responsible for the overall management of MPK's assets, and delegates investment decisions to the Investment Committee, which develops the investment strategy and sets the pension fund's tactical asset allocation and benchmarks. The pension fund's assets are managed through asset management mandates. The Investment Committee selects and monitors external managers. Investments follow a core-satellite approach, the portfolio being divided into a broadly diversified investment core and complementary satellite investments. The core of MPK's investments consists of bonds, equities (Swiss and international) and real estate. In terms of real estate, MPK favors investing directly as sole owner in buildings which are well built, meet sustainability standards, are regularly maintained and house satisfied tenants. They seek diversification across property types, locations and sizes, investing CHF 20 to 100 million per property. Satellite investments complement the core categories, contributing through increased yield and/or reduced risk. They can also provide access to niche markets, geographic approaches and active management strategies. Satellite investments may include investment grade corporate bonds, emerging markets bonds, government bonds indexed to inflation, high yield bonds and other fixed-income investments without leverage such as convertible bonds, distressed investments and loans. The satellite investments in shares or warrants may include small and mid-cap shares, private equity, hedge funds, commodities, gold and natural resources and other investments with equity risk. The satellite investments in real estate may include mandates and portfolios as indirect investments including Swiss and foreign real estate and infrastructure.