German investors keep current asset allocations despite market volatility

Around 70% of German investors are planning to keep their current asset allocation strategies even though average earnings rates on defined benefit (DB) assets have fallen by 0.3% from last year according to a survey conducted by Greenwich Associates.

The survey, conducted amongst 220 German institutional investors between March and May 2011, showed that average actuarial earnings rates on DB assets have fallen from 4.6% to 4.3%. Average funding levels of German DB schemes are currently measured at 87%. In contrast, for schemes with more than €5bn in assets under management, funding levels only stood at 79%.

However, despite asset rates falling, the majority of investors will not change their asset allocation plans due to tight regulation within the country, market uncertainty and strict risk budgets.

    Share Story:

Recent Stories


Podcast: Stepping up to the challenge
In the latest European Pensions podcast, Natalie Tuck talks to PensionsEurope chair, Jerry Moriarty, about his new role and the European pension policy agenda

Podcast: The benefits of private equity in pension fund portfolios
The outbreak of the Covid-19 pandemic, in which stock markets have seen increased volatility, combined with global low interest rates has led to alternative asset classes rising in popularity. Private equity is one of the top runners in this category, and for good reason.

In this podcast, Munich Private Equity Partners Managing Director, Christopher Bär, chats to European Pensions Editor, Natalie Tuck, about the benefits private equity investments can bring to pension fund portfolios and the best approach to take.

Mitigating risk
BNP Paribas Asset Management’s head of pension solutions, Julien Halfon, discusses equity hedging with Laura Blows

Advertisement