The Pension Fund does not measure its investment success using a benchmark comparison, but rather pursues a defined return target.
The necessary target return is calculated using a periodic asset and liability management study. This return should be achieved through a robust portfolio structure, rigorous risk control, and active portfolio management. The focus here is on developing long-term return drivers, exploiting the opportunities that arise, and active risk monitoring. The Pension Fund bases its asset management on a robust core portfolio combined with an overlay strategy that enables rapid reaction to changing market conditions and tactical adjustments to be made to the asset allocation.
The Pension Fund's Risk Manager measures and assesses the strategic, operational, and portfolio-related risks and reports directly to the Investment Manager. Predefined risk figures are used by the Investment Manager, the Investment Committee, and the Board of Trustees as a basis for assessment and guidance. The risk figures are discussed at regular investment meetings and meetings with the Board of Trustees. The Investment Manager uses these to manage the risk within the portfolio. When the relevant reference values have been reached, he will discuss the further procedure with the Investment Committee and submit to the committee a proposal for the continuation of the investment activities on the basis of his market assessment.
Investment process and controlling
The Pension Fund's investment team carries out its activities strictly according to defined investment processes and guidelines. Furthermore, investment activities are monitored on a regular basis and reviewed.
You will find further information on the Pension Fund's organization, responsibilities, investments, controlling process, and corporate governance in the Regulations on Investments and Provisions.