With the introduction of fiduciary management, asset managers are forced to offer more and more services to their institutional clients. One of these services is Asset Liability Management.
During the Asset Liability Management study the strategic asset allocation should be selected in such a manner that future developments are taken into account. In this regard a large number of uncertain external factors need to be considered.
With its Asset Liability Management (ALM) solutions and expertise, ORTEC offers support in establishing an optimum strategic policy in this dynamic and complex environment. Our ALM-software gives our clients insight into the most important risk factors and their influence on the particular long and short-term goals concerned. In this regard it is not only possible to analyse the future solvency situation of the institutional clients, but also the consequences for the company concerned and, in the case of pension plans, for the participants.
The ALM project therefore primarily consists of a solid risk analysis. Apart from that, ALM is applied to support institutional clients in setting out an integral strategic policy while taking into account the liability structure. In respect of the investment policy the following components are included:
- Strategic asset allocation (static and dynamic);
- Currency policy and regional allocation;
- Duration policy of the fixed income portfolio;
- The application of financial derivatives (swaps, swaptions and equity derivatives);
- Additional alternative investment categories (among others hedge funds, private equity, commodities).
You can also benefit from our experience in Asset Liability Management by attending the ORTEC Academy training courses.