08/11/2011
By Adam Cadle
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.
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