Be aggressive, use risk overlay: AllianzGI

Pension managers in Asia need to be more aggressive in taking on risk if they are to plug their funding gaps, says Reinhold Hafner, chief investment officer of the global solutions division at Allianz Global Investors. “If your funding only covers 70% of your liability obligations – which we estimate to be the case in a number of countries globally – you need to ensure your assets generate a higher return than your liability return,” he says Hafner. “Otherwise, you won’t improve t…