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AXP Assignment - The sensitivity of Equity portfolios towards political risk Den Haag • Werken bij MN
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Are you looking for a challenging graduation assignment or organization where you can do research? PGGM, MN and PGB offer you the opportunity to develop yourself, together with the best professionals in the field.
AXP
This assignment is part of the unique Academic Excellence Program (AXP). This program is a cooperation between MN and PGGM, two leading Dutch pension fund service providers. Students will get the opportunity to work alongside investment professionals, collaborate with other AXP students and learn about institutional investing. On regular AXP-days all students in the program will come together in The Hague or Zeist to share ideas, learn from each other, attend presentations from investment teams and discuss job opportunities.
Political risk is becoming a key factor in equity portfolio performance. Recent studies such as Pagliardi et al. (2021) show that firm-level political exposure affects returns, and internationally diversified portfolios carry political risk premia. At the same time, equity indices have become more concentrated in specific geographies and sectors, increasing vulnerability to regulatory changes, trade policies, and institutional instability.
This thesis explores how political risk scenarios can be integrated into portfolio optimization. The goal is to identify political concentration risk and improve risk-adjusted returns across different political environments. You will build a scenario-based framework that translates political developments into portfolio decisions.
Research Question:
How can scenario-based political risk modeling be applied to equity portfolio optimization to quantify political concentration risk and enhance performance across diverse political regimes?
Focus Areas:
- Estimating (geo-)political risk exposure and sensitivity of stock market indices;
- Understanding the drivers of sensitivity of stock market indices to geopolitical events;
- Portfolio optimization under political uncertainty;
- Diversification strategies across geographies and sectors;
- Attribution of performance to political versus market risk.
Jouw profiel
Note: This is an internship for a master thesis graduation research project.
For these assignments we are looking for ambitious students with:
- You are currently enrolled in a Master’s program in Finance, Econometrics, Economics, Applied Mathematics, or a similar discipline.
- You possess solid programming skills in Python and have experience using it for data analysis.
- You have a sound understanding of financial markets, with a particular focus on equity markets.
- Keen interest in geopolitics and how geopolitical events shape financial markets.
- You are well-versed in econometric and statistical methods;
- You have strong communication skills and feel confident presenting and discussing research findings.
The graduate student will be jointly supervised by members of the Treasury & Equity Execution team, where the emphasis is on executing strategies and seeing practical implementation aspects, and by the Thematic Research team, where the emphasis is on thought leadership and development of asset allocation strategies.
MN als werkgever
MN serves 7 pension fund clients in the areas of Board Advisory, Asset Management, and Fiduciary Management. For our clients we manage pension assets worth approximately EUR 150 billion, that makes MN the third largest pension fund Asset Manager in the Netherlands. About 35.000 companies (employers) in various industries are affiliated with our clients, representing about 2 million pension fund participants in total. We invest globally in equities, government- and corporate bonds, loans, real estate, and private equity, etc.
Als MN'er mag je rekenen op
- A monthly internship allowance;
- Close support from your MN assignment-supervisors;
- Co-operation with the other AXP students;
- Emphasis on work-life balance and flexibility in working hours;
- Numerous opportunities for learning and personal within the AXP program and a calendar filled with social events;
- Hybrid working environment as the default, with a modern office building in the center of The Hague. It is easily accessible by public transport and has in-house facilities for exercise, relaxation or a refreshing coffee from our in-house Barista;
- The 6-months internship should be scheduled within the first half year of 2026. For this assignment the main location will be MN in The Hague.
Contact
We would like to meet you! Click on the apply button and upload your resume and motivation. If you have any questions, please contact Siona van Dijk via de button "Solliciteer nu" op deze pagina.. We look forward to receiving your application and welcoming you to MN!
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