Industries :  Sovereign Wealth Funds/ Pension Funds, Banking Financial Service, Insurance Reinsurance & Brokerage ]

Asset-liability modelling (ALM) is a liability-driven financial risk assessment and asset planning tool used by pension funds & SWFs to help them define the optimal pension or sovereign investment  policy under market uncertainty in a coherent and consistent balance sheet approach. ALM involves developing feasible scenarios of the future evolution of pension fund & SWFs assets and liabilities, given certain assumptions about the mathematical  properties of economic, financial and biometric variables that impact on the evolution of assets and liabilities. R-square RiskLab can help in designing an optimal portfolio of real and financial assets based upon a client-tailored ALM model that is conceived as an overall risk management technique. Based on stochastic processes & simulation based ALM could then be used as a basis for decisions on the distribution of future pension contributions, SWFs asset pools, funding, and indexing or benchmarking levels.