Financial model

Disclaimer: This document has been translated directly from nl-NL (Dutch). In the event of any discrepancies between this translation and the original Dutch version, the Dutch version shall prevail.

Our financial model

Thousands of scenarios calculated. Our model simulates a broad spectrum of economic futures, from a prolonged recession to a period of strong growth, and everything in between.

The best strategy for every scenario. For each scenario, the model calculates which allocation across asset classes best protects your goal while maximising your chance of return.

Broadly diversified across asset classes. Your portfolio consists of a mix of equity, bond and money market funds, spread across regions and sectors.

The engine behind your plan

Behind every investment plan at Vive sits a financial model that does not base your strategy on a single expectation of the future, but on thousands of possible scenarios at once. This is called Asset Liability Management (ALM), and here is how it works.

Step 1: Generate scenarios

The model generates a large number of economic scenarios based on historical data, macroeconomic variables and statistical models. Each scenario describes a possible path for interest rates, inflation, equity returns and exchange rates over your investment horizon. Together, these scenarios paint a realistic picture of the uncertainty every investor faces.

Step 2: Optimise strategies

For each scenario, the model calculates how different combinations of asset classes perform. It finds the allocation that, across all scenarios, offers the best balance between the probability of reaching your goal and the risk you take. The result is not one size fits all, but a strategy tailored to your specific goal, horizon and risk appetite.

Step 3: Select funds

We fill the chosen allocation with broadly diversified index funds. Each fund is selected on multiple criteria, chief among them: low cost, liquidity, risk profile and sustainability. We invest in a mix of equity funds, bond funds and money market funds, spread across different geographic regions and sectors. This limits concentration risk.

Step 4: Recalculate periodically

Economic conditions change. That is why we update the model's estimates every quarter with the latest market data. If the outlook shifts significantly, your strategy adjusts with it. This keeps your plan grounded in current insights rather than assumptions from the day you started.

What this means for you

You do not need to follow markets, compare funds or decide when to rebalance. The model does this structurally, based on data and calculations rather than gut feeling. Change your goal or your contribution, and the model immediately recalculates a new strategy that fits your updated situation.

Investing involves risk. You may lose some or all of your investment. The model reduces uncertainty but cannot eliminate it. Past performance is no guarantee of future results.