The matching/interest risk is the risk of assets and liabilities (including off-balance sheet items) and/or income and expenditure not or not fully matched in the long term. A matching/interest risk can also occur in the short term. This is referred to as ‘liquidity risk’ and deemed less serious, as a considerable part of the PNO Media investment portfolio consists of investments in listed companies and because of the expectation that pension contributions and direct investment proceeds will amply exceed pension payments in years to come.
Longer termPNO Media controls the matching/interest risk in the long term by:
- Investigating the effects of the investment, contribution and indexation policies pursued (as well as of alternative policy variants) on the expected development in pension contributions, the effects of the option to index and the level of the capital coverage ratio of the fund by means of ALM studies and continuity analyses.
- Formulating the investment and hedging policies on the basis of these ALM studies and the advice of the Investment Advisory Committee (consisting of external experts).
- Embedding the investment and the hedging policies in the organisation by means of procedures, separation of duties, authorisations and limits.
- Monitoring the implementation of the investment and hedging policies on the basis of periodic reports and related advices from the Investment Advisory Committee.
The matching/interest risk is the risk of assets and liabilities (including off-balance sheet items) and/or income and expenditure not or not fully matched in the long term. A matching/interest risk can also occur in the short term. This is referred to as ‘liquidity risk’ and deemed less serious, as a considerable part of the PNO Media investment portfolio consists of investments in listed companies and because of the expectation that pension contributions and direct investment proceeds will amply exceed pension payments in years to come.
Longer termPNO Media controls the matching/interest risk in the long term by:
- Investigating the effects of the investment, contribution and indexation policies pursued (as well as of alternative policy variants) on the expected development in pension contributions, the effects of the option to index and the level of the capital coverage ratio of the fund by means of ALM studies and continuity analyses.
- Formulating the investment and hedging policies on the basis of these ALM studies and the advice of the Investment Advisory Committee (consisting of external experts).
- Embedding the investment and the hedging policies in the organisation by means of procedures, separation of duties, authorisations and limits.
- Monitoring the implementation of the investment and hedging policies on the basis of periodic reports and related advices from the Investment Advisory Committee.