No more room for traditional pension funds on both sides of the Atlantic?
In its latest Global Pension Study, MSCI said North American and Western European corporations showed the highest average ratio of underfunding in 2016.Read more
Risk management 2.0 – Time for a Recap!
It is now roughly 10 years ago since the credit crisis was unleashed. During this time, the financial sector has had to deal with a flood of new legislation and regulations in order to make the financial system more resistant to a new financial crisis.Read more
New article on risk neutral valuation in the international journal Applied Mathematical Finance
The article “On the modelling of nested risk-neutral stochastic processes with applications in insurance” has been published in the journal Applied Mathematical Finance. This research article focuses on the robust calibration of risk neutral models and integration in a real world scenario set.Read more
Economic capital and human capital determine the level of your pension
If you want to guarantee a sufficiently high pension income, you must have two types of capital: economic capital and human capital. Companies and institutes that need it to guarantee that they can bear the risks they run, even in a worst-case scenario mostly use the term of economic capital. Economic capital for private individuals is the guarantee that their pensions are not endangered.Read more
The 4 principles for currency management
Nowadays institutional investors hold well diversified portfolios with global investments. Given the fact that the investments are spread out all over the world, a currency dimension is introduced. The investors have exposure to different currencies. As institutional investors often have their liabilities in their home currency, this creates a discrepancy and introduces currency risk. This currency risk can be managed on a total fund level or on portfolio level.Read more
Consumers have a need for insight, guidance and advice.
People who want to put money aside for short-term or long-term goals have a need for insight, guidance and advice. The challenge for financial institutions is to meet all three of these wishes. This not only requires sufficient data, but also the courage to take risks.Read more
Interactive business cycle chart
Business cycles are one of the defining characteristics of realistic market behaviour (“stylized facts”) in asset prices, yield curves and volatilities, as well as in the broader macro-economic environment.Read more
Avoiding the pension fund event horizon: how close is close enough?
In his popular book “A Brief History of Time”, Stephan Hawking introduces the complex world of (astro)physics to a larger audience. One of the phenomena it describes are black holes, massive stars that collapse under their own gravity and attract everything in their vicinity towards their center. The book also describes the Event Horizon.Read more
Ortec Finance expands global presence with new Hong Kong office
Ortec Finance, expert provider of investment decision technology and solutions, today announced their continued global expansion with a new office in Hong Kong. The office will officially open in October 2017 with Mark Hoogendijk taking up position as Managing Director.Read more
IRR calculation in a multi-currency environment
The increased acceptance of the internal rate of return (IRR) means a growing demand for different IRR variants, such as a variant that accounts for the currency results that are gained from investing in a global market.Read more