Investment strategy Details
Here you will find further details on the investment strategy service and our approach.
Video – Investment Strategy / Asset Liability Management
Play Video
Various academic analyses show that performance differences can generally be explained by different investment strategies. Therefore, a specified investment strategy is essential.
Professional risk management requires extensive analysis of assets and liabilities. The success of the investment strategy largely determines the achievement of the investment goals. Asset and liability management is thus one of the core responsibilities of institutional investors (e.g. pension funds). In contrast, private investors strive primarily for value preservation and stability when formulating an investment strategy.
Setting investment targets
Establishing the minimum rate of return and its determinants, taking different scenarios into consideration, e.g. regarding contributions, benefits and costs as well as the evolution of the pool of insured persons or depending on the target performance.
Asset Liability Management (ALM)
Analyzing the characteristics of assets and liabilities shows the extent to which liability risks can be offset through appropriate investments. These risks are therefore contemplated from the perspective of overall balance (integrated risk management).
Risk profile analysis
The risk profile shows which risks an institutional investor can offset on his own or at best through additional contributions by the risk-bearers. It provides the basis for formulating an appropriate investment strategy. The effects of stabilization measures are analyzed and quantified (see above graphs).
Determining asset allocation
The economic characterization of liabilities allows for the formulation of an appropriate investment strategy geared to those liabilities.