The Fund’s investment operations will develop in three periods.
The level, structure and differentiation of the investment risk of contributions is the sole responsibility of TEKA’s Board of Directors.
In the first, transitional period, the contributions will be invested in very low risk financial products (deposits in the Collective Investment Fund of Legal Bodies Governed by Public Law and Social Security Funds which is managed by the Bank of Greece). The transitional period shall end when TEKA’s first Board of Directors develops and customises the Fund’s investment strategy and develops its default portfolio. The transitional period is expected to last from January 2022 until up to 6 months after the first Board of Directors assumes its responsibilities.
During the second period, the default portfolio will be available, comprising investments in a broad and diversified securities portfolio which will have a life cycle structure. In practice, during this phase, all insured persons will have the same type of portfolio since their age is similar.
The EDEKT AEPEY investment committee will support the Board in developing TEKA’s investment strategy, while EDEKT AEPEY will operate as an external investment manager and support the implementation of the Fund’s investment strategy. The second period is expected to last until the end of 2024. During this time, the Fund’s Investment Committee will be staffed and it will develop its operational capacity.
During the third period (from early 2025 onwards), after the addition of the voluntarily insured persons into TEKA (persons born after 1.1.1987), the life-cycle structure in the default portfolio will assume an operational dimension.
Specifically, the risk associated with each insured person’s portfolio will vary depending on his or her age.
Appropriately designed differentiated risk pension/investment products will also be made available to persons who wish to select and determine themselves the level of risk associated with their pension savings.
In parallel, the Fund will set up its own Investment Committee and the Investments Directorate will assume a more active role, while EDEKT AEPEY shall continue to support TEKA’s investment operations as an external investment manager. Within two years from the start of the third period, TEKA shall create a Register of certified external investment managers to broaden its investment options.