In the PensionManager simulation the participants will experience the role of a pension fund manager over a (fictive) period of 10 years. During the simulation they will come across different economic conditions, changing interest rates, inflation and asset returns.
As with most of the Oxyor Manager simulations the PensionManager simulation is generally played in groups. Each group of participants is responsible for the management of their own fictive pension fund. Their responsibilities include: asset & liability management, duration matching, interest rate risk hedging, compliance with Central Bank regulation and managing the interests of all stakeholders.
The participants will gain an in-depth understanding of the most important factors influencing the balance sheet of a pension fund, as well as experience the influence of developments in the financial markets on the balance sheet .
Currently the PensionManager simulation is only available in Dutch. On request though we can easily accommodate other languages and incorporate your local needs in our simulation.
Key issues covered
- Determine the pension fund objectives
- Manage the investment portfolio, through ‘normal’ economic cycles and ‘unexpected shock’ scenarios
- Duration management
- Interest rate hedging
- Balance the interest of all stakeholders (active members, retirees, unions, regulators and politics)
- Interpretation of macro-economic data and economic news
- Decision making under economic uncertainty
- Compliance with regulatory requirements
The PensionManager simulation is internet based and usually runs over a period of one day. In one session a period of 10 years is simulated. The duration may be adjusted to match the participants’ experience and available time.
A standard session would require either one hour’s worth of e-learning or classroom presentation before the start of the PensionManager simulation.
After a PensionManager simulation session, the group feedback takes on average one hour. Individual feedback (optional) can range from ten minutes to one hour per participant depending on the required depth of coaching.
During the PensionManager simulation session the trainer or instructor (optional) will interact with the participants by analysing their strategy and performance and give continuous feedback. After a PensionManager simulation session the participants maybe reviewed as a group (a ‘pension fund board’) but also individually (optional) by a trainer or instructor on specific aspects including the following:
- Fund strategy handling and meeting of stakeholder objectives
- Risk management
- Knowledge and awareness of economic developments
- Reaction to news and market changes
- Liquidity management