Asset allocation strategy
The asset allocation strategy and organisation are laid down in the asset allocation regulations. The execution of the asset allocation strategy is assigned to the Head of Asset Management, pension fund portfolio managment experts or external specialists.
Asset-Liability Management Study
Based on the financial statements as at 31 December 2017, our investment controller PPCmetrics conducted an asset-liability management (ALM) study. The study provides a detailed analysis of the financial and structural risk capacity of the Pension Fund. Based on that risk capacity analysis, the Pension Fund Board has approved a risk budget on a par with previous levels, with the proviso that it should also cover implementation risk going forward. As a consequence, the strategy was adjusted, new classes of equities were introduced and the equity weighting slightly reduced. In addition, equity investments will follow a mostly passive investment strategy in future. The benchmarks, too, were adjusted accordingly. Also in connection with the changes to the investment strategy, the Pension Fund has revised the investment regulations overall and rewritten them in line with current best practice. The new investment regulations took effect on 1 January 2020 and are available for download under Downloads. The regulations are available in German only.