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An ALM Model for Pension Funds using Integrated Chance Constraints

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Author Info
Klein Haneveld, W.K..
Streutker, M.H.
Vlerk, M.H. van der (Groningen University)
Abstract

We discuss integrated chance constraints in their role of short-term risk constraints in a strategic ALM model for Dutch pension funds. The problem is set up as a multistage recourse model, with special attention for modeling the guidelines proposed by the regulating authority for Dutch pension funds. The paper concludes with a numerical illustration of the importance of such short-term risk constraints.

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Paper provided by University of Groningen, Research Institute SOM (Systems, Organisations and Management) in its series Research Report with number 05A03.

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Date of creation: 2005
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Handle: RePEc:dgr:rugsom:05a03

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