Asset management for financial institutions

If the capital market theory in form of the Capital Asset Pricing Model (CAPM), and the Value-at-Risk (VaR) method, were actually consistent with the investment reality, then the analysis, evaluation, control and monitoring of investment portfolios would be relatively easy. This is admittedly a somewhat provocative thesis. Based on the experience of 2008, however, it can be demonstrated that the currently applied theory failed, what the consequences were and what opportunities for improvements there are, in particular for asset managers whose income streams are usually directly related to the value of the managed assets.