Summary
The purpose of the Pool is:
1) to provide protection against unexpected inflation.
2) to provide duration for liability hedging, liquidity and diversification versus other asset classes.
Active management is in charge of cost-effective and efficient portfolio management. It is internally managed and mainly invests in government bonds and government-related debt. Derivatives are used to hedge risks and for efficient portfolio management. Important drivers of excess returns are country selection, break-even positioning, duration positioning, and issuer - and issue selection.