Pensions | Aiperion

Pension Plans

RiskKey^®

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

MEET WITH US FOR A TARGETED DEMO

R&D

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 (e.g., deal features) 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 an option-based framework
Framework for assessing comparatively the structural robustness of retirement systems: DC/DB/hybrid

Consultancy

Examples of consulting services relevant to pension plans:

AI + utility-based asset allocation optimization that accounts simultaneously for investment risk, liquidity risk and liability risk
AI + utility-based optimization of active risk (implementation)
Maximize the forward-looking magnitude and duration of outperformance versus benchmarks and peers
Other total portfolio risk management functions: convexity management, multi-criterial leverage optimization, optimal investment sizing
Determine the optimal range (size and asymmetry) for each asset class in asset allocation
Tactical allocation; optimal positioning within allocation ranges
Optimal overlay design: FX, convexity hedging, liquidity risk mitigation, leverage, portable alpha
Commitment pacing optimization for private investments
Probabilistic macro-dependent models for calls and distributions related to illiquid asset classes
Advanced scenario models for probabilistic cash-flow projections that incorporate complex, interconnected risks
Short-term liquidity optimization (e.g., to support margin calls from overlays, leverage, etc.)
Advanced liquidity stress testing
Advanced asset & liability studies
Nonlinear modeling of underlying managers. This is particularly powerful in the case of hard-to-model portfolios, such as diversifying, opportunistic, PE, or VC.
Nonlinear modeling of internally-managed sub portfolios
Various applications of modeling to manager vetting including hidden risk discovery, convexity assessment and risk pricing
Optimal liquidity sourcing and deployment: real-time quantitative support for rebalancing, entries and exits (also available on a self-service basis)
Training and support for managing the total portfolio directly in the integrated asset-liquidity-liability mathematical space

ASK US FOR DETAILS

FAQ

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

Who works with us?