The dpn ASSETS&LIABILITIES CONVENTION (ALC) took place for the third time in Essen in September 2023. Over two days, the specialist publisher F.A.Z. BUSINESS MEDIA brought together decision-makers and experts in the field of pension obligations and pension investment management. As part of a panel discussion, Felix Siegle from Funding Solutions gave insights into the asset management of pensioner companies.
„LDI vs. CDI – Balance Sheet Optimization vs. Economic Rationale“
- Vivien Konrad, Investment Solutions Manager, Schroders
- Stefan Prey, Head of Pension & Asset Management, Vodafone
- Marcus Wilhelm, Head of Corporate Pensions, Airbus
- Felix Siegle, Partner, Funding Solutions
- Moderation durch Dr. Guido Birkner und Goran Culjak, dpn-Redakteur
The pros and cons of IFRS balance sheet-driven investing (Liability-Driven Investing or LDI) are highlighted in a good exchange. For many corporates, there is no alternative to a high degree of hedging against balance sheet fluctuations (OCI volatility). In contrast, the focus for investment strategy of pensioner companies is placed on covering and ensuring cash flows. Interim accounting approaches and valuations are of secondary importance. A corresponding approach can be Cash-flow Driven Investing (CDI), which was presented in detail by Vivien Konrad from Schroders. A CDI orientation leads to a systematically higher expected value with controlled risk compared to an LDI orientation, which is referred to as an off-balance advantage.
The dpn ASSETS&LIABILITIES Convention
The concept of the dpn ASSETS&LIABILITIES CONVENTION is to focus on the holistic approach of liability and asset side in pension management. It was launched in 2020 by the specialist publisher F.A.Z. BUSINESS MEDIA. Since its premiere, the ALC has stood for the logical combination of key issues in asset and liability management. Inspiring keynote speeches by renowned economists and prominent representatives from politics and science address socio-political and economic developments, while new ideas and approaches for a resilient, future-proof investment portfolio are examined and scrutinized from all sides in practical discussion rounds and workshops.
The dpn ASSETS&LIABILITIES CONVENTION specifically promotes competence building, knowledge transfer, courage to change and content-driven networking – true to the motto of F.A.Z. BUSINESS MEDIA: enabling smart decisions.