Your risks, seen as a whole
Holistic approach to the risk balance sheet: Asset and liability management (ALM) is a valuable instrument for managing the investment strategy and aligning the strategy to the total liabilities. With ALM, it is easy to draw up a forward-looking asset and liability budget and define a risk-adjusted investment strategy.
A dynamic asset-liability analysis is based on a holistic approach to the performance of a pension fund’s assets and liabilities that provides input for an optimised investment strategy that has been geared to meet the pension fund’s liabilities and matches its risk capacity. This analysis is then used to formulate the pension fund’s asset allocation strategy.