Understanding challenges around pension scheme discounting policies

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The lively debate around the use of the revised IORP Directive’s Holistic Balance Sheet (HBS) gives us an occasion to provide a quick overview of pension schemes’ liabilities discounting policies and asset allocation practices in Europe and in the US. We conclude by explaining the threat posed to those pension funds that continue to use fixed discount rates and we …

Active Asset Allocation Awarded Innovation Label by Reseau Entreprendre Cote d'Azur

          Active Asset Allocation has been awarded by Réseau Entreprendre Cote d’Azur (French regional public organisation created to foster the development of the local economy) the Innovation label. It reflects the will of the organisation to support Active Asset Allocation in its development to provide innovative asset allocation solutions.  

Drawdown Control Solution : Dynamic Asset and Risk Management (DARM)

[row] [/row]   Our Drawdown Control Solution relies on a proprietary technology called DARM. It dynamically allocates capital between the asset classes the investors wish to be exposed to while limiting the downside risk to a level that is pre-defined. DARM allows to take into account and manage efficiently investors’ issues (capital preservation, regulation, etc…) by redefining risk with their particular constraints (going further …

Risk Letter | At the in-efficiency frontier

This second Active Asset Allocation « Risk Letter » looks at the delicate question of the choice of hypotheses, using the example of the efficient frontier. It touches upon the influence of an incorrect choice on asset allocation decisions and their consequences. What do pension funds and institutional investors all have in common? They all start the investment process by …

DALM Solution : Dynamic Asset & Liability Management

The DALM solution is an extension of the TPPI approach to Asset Liability Management (ALM).  The TPPI (Time-varying Proportion Portfolio Insurance) is an advanced portfolio insurance technique.  The DALM designs a dynamic allocation between a core portfolio and satellites. The core portfolio is built to hedge the liabilities of the pension fund and satellites are constructed to seek performance. The DALM …

Frequently Asked Questions

How does Active Asset Allocation adapt its services to the client? We customize each of our solutions to fit with your risk constraints and investment universe. To do so, we identify the asset classes you want to invest in and the maximum risk that you are willing to take. We then design a specific solution, test it in a stochastic …