The ORTEC Finance "Private Asset-Liability Management" Research Chair
The ORTEC Finance "Private Asset-Liability Management" Research Chair is a three-year research programme piloted by a joint ORTEC Finance/EDHEC-Risk Institute committee focused on understanding the application of Asset-Liability Management (ALM) methodology in Private Wealth Management (PWM).
Under the scientific responsibility of Lionel Martellini, the Scientific Director of EDHEC-Risk Institute, first-year research will focus on the superiority of the ALM approach in private wealth management (PWM), with special attention being given to the Life Cycle asset allocation developed in the academic literature over the past decade.
Subsequent research in the course of the three-year project will examine the shortcomings of current PWM practices, putting them in perspective in relation to best practices for Private ALM, and also look at the consequences of high levels of inflation for Private ALM. The latter will involve general inflation (global price index) or particular cases of inflation, e.g. the inflation exposure of HNWIs.
[Consult the press release announcing the launch of the research chair: 22/09/08]
Research output:
- Reactions to an EDHEC-Risk Study on Asset-Liability Management Decisions in Private Wealth Management (October 2008):
- Press release announcing the results of the survey:
- Survey report:
This report covers the industry reactions to an EDHEC-Risk study entitled "Asset-Liability Management Decisions in Private Banking". That paper discussed the sources of added-value in private wealth management, and argued through a series of illustrations that asset-liability management is the natural approach for the design of truly client-driven services in private banking.
The objective of the current paper is to compare the conclusions drawn by the "Asset-Liability Management Decisions in Private Banking" study with current industry perceptions. The basic question we are asking is: what do practitioners think about using asset-liability management in private wealth management?
- Asset-Liability Management in Private Wealth Management (September 2009):
- Press release announcing the results of the study:
- Study:
The study argues that asset-only asset allocation models fail to account for the presence of investment and/or consumption goals and objectives, such as preparing for retirement or acquiring property. It instead provides a formal framework suggesting that asset-liability management can ensure that private wealth managers are able to offer their clients investment programmes and asset allocation advice that truly meet their needs.
ORTEC Finance Analysis:
- ALM the solution for risk management and client-centered advice in Private Wealth Management (April 2009):
"ALM the solution for risk management and client-centered advice in Private Wealth Management"
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