Eurobank Highlights Investment Strategy Priorities in Pension Planning

The 16th Pension Forum in Nicosia placed the spotlight on the major challenges confronting Cyprus’ pension system, while also exploring fresh perspectives arising in an environment undergoing rapid transformation, according to the event overview.

The forum, titled ‘Making better decisions – New perspectives for the pension’, took place with the support of Eurobank.

During the discussions, speakers emphasised that the demand for strategic flexibility and specialised expertise has become more pressing than ever, as technological advancements, evolving investment approaches and shifting regulatory frameworks continue to accelerate at an unprecedented pace. As a result, pension funds are increasingly expected not only to serve as essential security structures but also to function as drivers of sustainable economic growth.

In his presentation, Savvas Christodoulou CFA, Manager of Investment Advisory at Eurobank, concentrated on the importance of understanding investment strategies, identifying return opportunities and managing risk effectively.

He explained that including securities with low correlation “helps reduce volatility and improve the return/risk ratio”, further noting that returns tend to be less influenced during periods of significant cash flows and that portfolios exhibit greater stability during market crises, making outcomes “more predictable”.

Christodoulou pointed out that each fund’s management committee sets its own profile and determines the level of risk it is prepared to undertake, which in turn shapes the investment strategy that will be followed. He highlighted the relevance of the investment horizon, the duration of the fund, anticipated returns and the willingness to accept short-term losses, saying that these factors collectively define risk tolerance.

The forum also heard that pension fund asset allocation has undergone substantial changes over the years. While funds traditionally relied on an investment model largely focused on stocks and bonds, the growing need for long-term stability now demands broader diversification and stronger adaptability.

According to Eurobank, within this evolving investment environment the bank advises pension funds and collaborates with them to re-evaluate their portfolios and geographical allocation, ensuring they are well positioned to take advantage of emerging opportunities.

The bank’s services include transparent risk management, which it stressed remains central to its relationships with clients, as each agreement is treated as a lasting partnership.

By fLEXI tEAM