For the guaranteed basic pension, pension funds should make sure that the mismatch risk is minimal. This is in compliance with the Financial Supervisory Framework, which makes clear that either side of the balance sheet is sensitive to market rate changes and, hence, makes the interest rate risk visible. The interest rate risk is determined by the difference in maturity between investments and liabilities.
Unsurprisingly, OFC’s are the object of constant attack, especially from the OECD and the G20. They seem to have spawned a cottage-industry of specialists regularly taking potshots at OFC’s. We cannot ignore the fact that small country IFC’s play an important role as conduits of cross-border capital flows and investments.