Portfolio strategy and asset classes

Portfolio strategy

At the beginning of 2008, the management of the Foundation’s financial portfolio was completely reorganised. Thereby, the income objectives were defined on the basis of the planned funding volume, the corresponding administrative costs and the inflation adjustment required to preserve the value of capital. The outcome was a target yield equal to the rate of inflation plus 3%. The intention is to spread risk as widely as possible by investing in diverse asset classes: shares, bonds, property, commodities and absolute return funds. This is designed to ensure that the target income is achieved with the minimum of volatility.

The basic principle is to "steer with a steady hand", and this should make it possible to generate target incomes above the long-term average. Short-term negative price swings will not immediately lead to adjustments.

Asset classes

The assets of the Foundation, which amounted to about EUR 511,8 million at 31 December 2016, are invested as follows:

 AWARD "BESTE STIFTUNG 2012"

 

The Foundation won the portfolio instituionell award in 2012 for the third time after 2009 und 2011.

 

More Information

Facts and Figures of the foundation Stiftung