Enhanced Duration Pooled Funds

Nexus Risk Management and KBSH Capital Management Inc. broadened the Asset Liability Management services they provide to the pension and life insurance industry by offering Enhanced Duration Pooled Funds strategies to manage interest rate risk and optimize return. The available fixed income securities do not to provide sufficient interest rate exposure or yield for insurance companies and pension plan sponsors. Companies may be left with material interest rate mismatches which extend far beyond their risk tolerances. An Enhanced Duration Pooled Fund uses a combination of high quality government bonds and plain vanilla interest rate swaps along with a dynamic rebalancing strategy to allow companies to:

  • Significantly increase duration to manage interest rate risk exposure,
  • Simplify the internal asset management mandate, and
  • Increase return on a risk-adjusted basis.

For further information:
Jonathan S. Hede, Vice President, Nexus Risk Management or + 1 416 593 9500

About the Company
Nexus Risk Management creates focused strategies for managing risk to maximize value. We deliver tools, training, expertise and execution to our clients with the clarity needed to achieve their financial objectives. We work closely with insurance companies and pension plans, rating agencies and regulators, leading experts from academia and the investment industry as well as reinsurers and other counterparties. Through offices in North America and Asia-Pacific we provide highly specialized risk management products and services to our clients globally.

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