A professional risk management requires an integrated analysis of the assets and liabilities. The success of the investment strategy has a significant impact to whether the provision targets will be achieved or not. Therefore, asset and liability management is one of the essential responsibilities of a pension fund.
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| The minimum rate of returns and their deciding factors are determined taking into consideration different scenarios regarding contributions, benefits and costs as well as the development of the insurance portfolio.
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| Analysing the investment related risk profile shows which risks a pension fund can compensate by its own efforts or at best by additional contributions by the risk-bearers. This provides the basis for elaborating an appropriate investment strategy and replies to the following essential questions:
- What is the effective financial situation (financial risk profile)?
- Which measures can be taken in order to react to a changed financial situation and how efficient are they (structural risk profile)?
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| Analysing the characteristics of the assets and liabilities shows how the liabilities’ risks can be compensated with appropriate investments. Therefore, these risks are looked at from an overall balance view.
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| Owing to the economic characteristics of the liabilities, an optimal investment strategy matching with the liabilities can be elaborated.
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