Bloomberg News reports that UBS reduced exposure to euros for Swiss multi-asset pension funds that month because of a weak euro-zone economy and more discussion in Switzerland about the franc’s cap on the euro, Hirt said in a telephone interview.
The Swiss National Bank (SNBN) surprised the world by abolishing the cap, sending markets into a tailspin.
'We saw it coming', said Hirt, chief investment officer for Europe and Switzerland at UBS’s global investment solutions unit. His choice to reduce holdings minimized losses on about $17.4bn of funds he oversees, according to Hirt.
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