Asset Liability Management

Is your investment policy truly tailored to your pension commitments?

The financial markets are becoming increasingly complex and volatile. Against this background, how can you :

• ensure that that the risk-taking implicit in your investment policy remains acceptable?
• reduce the risk of under-funding, while at the same time maintaining a reasonable contribution rate?
• control the balance sheet volatility caused by the recording of your pension plan in your accounts within the IAS/ IFRS accounting standards?
• provide proof of acceptable actuarial hypotheses from the perspective of the audit authorities (CBFA)?

Efficient asset-liability management

ALM covers a set of techniques and processes which allow the pension fund to put in place an investment policy that is truly tailored to its objectives and to the profile of its commitments, while still taking account of the constraints - regulatory, demographic and others - which it has to contend with.

An effective ALM model and a comprehensive support process

Aon Consulting Belgium has developed an ALM model permitting not only the quantification of the risks implicit in your current investment policy but also the proposal of an optimised investment policy. This stochastic model takes account of the interactions existing between the asset and the liability.

Moreover, the involvement of our specialists is not limited to the actuarial modelling of the assets and liabilities. They support you throughout the ALM process and help you to implement your ALM policy in collaboration with your Asset Managers.