Asset Class
Return Estimation

Translate the long-term VISION of the CIO/Board or Investment Committee into asset class returns. Focus on what matters in the long term.
Mira ABM helps the CIO/Board or Investment Committee retain the control of investment strategy and provide robust support for economic inputs to ALM.

Long-lasting trends such as:

  • Demographics
  • Automation
  • Globalisation
  • Societal choices

Asset
Allocation

Identify structural long-term shifts in asset pricing and steer the fund away from over-valued asset categories.

Mira ABM supports valuation of:

  • over 70 asset categories
  • across all regions
  • listed and private asset classes
  • narrow (e.g. Berlin Residential Property) or broad (MSCI World)
  • multiple modelling approaches to align with institutional philosophy

Strategic Risk Management

Stress testing and scenario analysis based on Agent-Based Modelling; scenario impact on asset classes in Mira ABM is estimated on the basis of real economic relationships and not historical statistical analysis.

  • ability to test scenarios that never occurred before, e.g. Brexit or collapse of a currency block
  • ability to assess non-linear relationships and impacts
  • a wholistic analysis of scenarios: both negative and positive “ripple” effects of each scenario are taken into account

Regulatory Compliance

Transform the regulatory exercises into value-adding insights. Triple A Risk Finance and LINKS Analytics have joined forces to deliver scenario sets for pension funds and insurance companies based on the Mira Agent-Based Model (ABM) framework.

  • Deliver scenarios that are plausible given today’s real world,
  • Generate the required scenarios for regulatory assessment, including ALM, ORSA, IORP – all on the basis of the vision and expectations of the investment committee or the board.
  • Flexible and proven models from Triple A combined with insights gained from Mira ABM result in an investment policy that will stand the trial of time and the regulators.

What our client say

“The fact that your model (MIRA) has a different methodology/approach than the standard stochastic ALM model, resulting in a different view of the world, definitely gives food for thought. In our previous ALM-study we used the standard model, but we were not very enthusiastic about that, as it did not add much value but was more of a confirmation of our assumptions. Your approach is absolutely more challenging and that is exactly what we are looking for. What also helps us a lot is LINKS analysis of the differences of underlying assumptions/views of the world, specifically the requirements that need to happen in order to “accept” our core assumptions.”

Head of Investments, major pension fund (over 30 billion AUM)

“This (Mira) is exactly what we would have developed internally if we had the time and resources. It helps to price assets consistently and does not ignore the underlying complexities. The fact that it also handles liabilities and is flexible enough to incorporate various pricing models for different asset classes is a big plus”

Head of Strategy, major pension asset manager (over 50 billion AUM)

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