Asset-liability matching solutions
We are able to do this through our systems, vast capabilities and years of liability-driven retirement investment strategies, including traditional cash flow matching strategies, as well as alternative return-enhancing approaches. Having direct access to a life insurance license, investment teams focusing on active portfolio management, derivative experts and pension fund liability experts, we are able to implement unique, tailored solutions at a competitive all-inclusive fee.
Our Asset-liability Matching Solutions
- Cash Flow MatchingSuitable for
A client who wants to be protected from interest rate risk by investing in assets that match liabilities
What the fund aims to achieve and howAppropriate assets are chosen to mitigate all the interest rate risk related to the liabilities.
- Cash Flow Matching OverlaySuitable forWhat the fund aims to achieve and how
A client who wants to be protected from interest rate risk by investing in assets that match liabilities
At the same time wants exposure to assets that can outperform the liabilities
This approach is similar to the Cash Flow Matching strategy with an additional overlay layer that allows the client to have some exposure to real assets. Although all the interest rate risk is mitigated, an active investment decision is made to also invest in assets other than interest bearing investments thereby resulting in some short-term market risk, but higher future expected increases.
- Dynamic Target-driven HedgingSuitable forWhat the fund aims to achieve and how
A client who wants to be protected from interest rate risk by investing in assets that match liabilities
At the same time the client wants exposure to assets that allow the assets to outperform the liabilities
This strategy allocates assets between a Matching portfolio and a Growth portfolio. The Matching portfolio matches the client’s current liabilities mitigating all the interest rate risk, while the Growth portfolio determines the future increases. The strategy is actively managed at all times to maintain the optimum allocation between the Matching portfolio and the Growth portfolio, thereby removing subjective investment decisions included in traditional enhancing cash flow matching or liability driven investment strategies.
- Inflation Annuity Tracker PortfolioSuitable for investors whoWhat the fund aims to achieve and how
Retirement fund members who are within five years of retirement, who want greater certainty about their final retirement income and who want to link their income to inflation
Defined benefit pension funds that want to reduce the uncertainty of the cost of purchasing a post-retirement income that grows with inflation, for members close to retirement
Preserves a member’s ability to purchase an inflation-linked annuity by closely matching movements in its benchmark index, the SALI Real, which tracks the changes in the cost of an inflation-linked annuity caused by changes in real interest rates.
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