We had the pleasure to chat with Iven Kurz, founder and CEO of Evergreen GmbH. Evergreen is a German retirement focused Robo advisor. Before founding his own company, Iven was a total return fund manager for two of the biggest German Private Banks. The total return investing style Iven uses is called Passive Dynamic Investing, which is based on the Black-Scholes Option Pricing Theory and he used for many years. We dive deep into the weeds of this investment form and see why it is being used for retirement saving. Please keep in mind this is not investment advice. Full disclaimer at the end of the podcast.
The topics discussed include:
03:00 – investment philosophies
04:30 – How Iven got into Total Return investing
07:00 – portfolio insurance investing and what is passive dynamic investing (PDI)
12:30 – deep dive into PDI and Option Pricing theory
17:30 – what is the goal of PDI
23:55 – how does risk work in PDI?
26:40 – PDI for retirement planning and risk
29:00 – risk budgets
32:00 – predicting returns for PDI Investing
35:25 – about long short total return investing
37:30 – What Evergreen does
40:50 What Evergreen does differently
43:30 – costs and risk premium for robo-advisors
47:20 – PDI and black swan events
50:15 – closing questions
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Luke, Leo & Andy