Pension Plans
Both departing from and complementing traditional risk reporting, RiskKey® can greatly support the thought process and decision objectivity of:
  • CIOs and investment officers
  • Portfolio managers
  • Risk and allocation teams
  • Analysts/manager research teams
  • Administration and finance staff
  • Sponsors

For pension plans, Aiperion R&D tends to belong to three categories: complex risk pricing (e.g. complex market situations, complex investments, etc.), governance, and structural optimization.

Examples of commissioned projects and studies relevant for pension plans:
  • Modeling and pricing complex real options in assets and liabilities
  • Minimum EBITDA growth required to compensate the USD investor for taking risks in certain countries (related to co-investments and private equity investments)
  • Price of FX risk in specific countries (related to decision to hedge specific currencies)
  • Modeling and valuation of restructuring options for the pension plan
  • Model of the liabilities of hybrid public pension plan using option-based framework
  • Framework for assessing comparatively the structural robustness of retirement systems: DC/DB/hybrid
Examples of consulting services relevant to pension plans:
  • Nonlinear modeling of underlying managers. This is particularly powerful in the case of hard-to-model portfolios, such as diversifying, opportunistic, PE, or VC. Based on these models, the client’s staff can then manage the portfolio independently using all features included in RiskKey®.
  • Nonlinear modeling of internally-managed subportfolios
  • Various applications of modeling to manager vetting, portfolio construction and allocation (e.g. optimal sizing, more accurate design of combined investment structures, such as portable alpha, risk parity, etc.)
  • Risk-based evaluation of asset allocation or of proposed changes to asset allocation
  • Objective, mathematical basis for major portfolio decisions, such as passive vs. active, liquid vs. illiquid, and leverage
  • Transition to risk-based portfolio implementation
  • New investment practices for portfolios and underlying investments
  • Training in multidimensional nonlinear modeling
  • Board and staff education
  • Optimization of the “liquid” (sub)portfolio serving a private equity (sub)portfolio
  • Optimal liquidity sourcing; quantitative support for entries and exits
  • Managing portfolio directly in the integrated asset-liability space
What is the difference between Aiperion consultancy and R&D?
  • In consultancy, we are generally able to apply our already developed conceptual frameworks and solutions to solve clients’ problems
  • In R&D (projects and studies), we need to develop and apply new conceptual frameworks or solutions to solve clients’ problems
Is Aiperion willing to fund pension-related research?
  • We view governance and structural efficiency of public pensions as major drivers of social value creation. They have been areas of focus for us for more than a decade. We are able to co-fund projects that we do in these areas.
  • Internal funding option for small pension funds: if you have a project which is impactful for your organization and beyond but are budget constrained, talk to us; we will consider it for internal funding
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