The ageing population and increased life expectancy puts a tremendous strain on the pension system. On the one hand the number of pension funds has declined in several European countries, whereas volatility on the other hand has increased due to political and economic uncertainties.
Due to this growing societal and economic pressure on Europe’s pension funds, advanced risk management is required in order to secure their sustainability and the environment of low or even negative interest rates for portfolio optimisation.
The sus@pension project aims at developing a cloud platform with an intelligent FinTech engine for pension fund operators to reduce risks and optimise their investments. sus@pension will deliver the first intelligent web service for Asset Managers to reduce the risk of their portfolio and to secure the sustainability of pension funds.
The number of pension funds has declined in several European countries whereas their volatility has increased due to political and economic uncertainties. In order to secure the sustainability of Europe’s pension funds more advanced risk management models are required.
Although the classical mean-variance approach to optimise the structure of a financial portfolio in terms of risk-return trade-off has severe limitations, this outdated approach from the 1950s is currently still applied by most pension funds as their key portfolio optimisation tool. AAAccell`s methodology known as "PSARM"is designed to deliver the entire predictive statistical distribution of a set of assets.
The main goal of sus@pension is to deliver a cloud based intelligent risk management tool for Asset Managers of pension funds to optimise their portfolios. Together with the Research Industrial Systems Engineering GmbH, AAAccell will develop an innovative, intelligent FinTech engine that is implemented and integrated into a new service oriented Cloud IT Infrastructure, providing customers with an intuitive user interface and meaning full data representation. This new FinTech engine has the potential to make a significant contribution to the financial viability and sustainability of pension funds for the benefit of millions of European citizens.
- EUREKA-Eurostars 2