Key parameters for investment policy

The Ordinance on Occupational Retirement, Survivors’ and Invalidity Pension Plans (BVV 2) specifies which asset investments are permitted. Under the terms of the Ordinance, asset investments must be demonstrably secure; risk must be diversified and there must be sufficient yield and liquidity. In common with all other pension funds, the IntegralStiftung must thus to follow investment policies which allow it to comply with its obligations at all times.

The investment performance of the Integral Foundation is based on an investment strategy with a tangible asset component of 60% of fixed assets. The aim is to achieve a conversion rate and an interest rate above the statutory minimum conversion rate and minimum interest rate.

In contrast to bonds, equities are much more exposed to the fluctuations of the financial markets, especially trading on the stock exchanges. The return on investment can vary greatly from year to year. The expected long-term return is significantly higher than for an investment strategy with a high proportion of nominal values. The higher the proportion of equities in a fixed asset, the greater the fluctuation in the funding ratio of a pension fund.