European Organization for Nuclear Research Pension Fund, Geneva, is increasing its allocation to a corporate and high-yield bond portfolio managed by Merrill Lynch Investment Management, according to Christian Cuenoud, plan administrator. The 3.5 billion Swiss franc ($2.1 billion) plan added 25 million francs to the portfolio, bringing it to 75 million francs. It may allocate an additional 25 million francs to the portfolio early next year, depending on market conditions, he said. Funding will come from cash.
The plan now invests 45% of total assets in European and international government bonds.
Further changes are expected in January when plan trustees meet to approve a new asset allocation; the plan may increase its equity allocation by 10 percentage points, to 50% of total assets, by investing more in U.S. stocks. Trustees were to have approved the new asset allocation in August but were delayed.