Lukas Riesen is a partner at PPCmetrics in Zurich. See www.deckungsgrad.ch
Illiquid investments should appeal to pension funds because of their long-term benefits, but are opportunities equal?
For any pension scheme, the purpose of investing is to fund future benefits. A pension fund can offset investment risks in two different ways – either by taking advantage of existing risk capital (reserves), or by adjusting future contributions and benefits.