ALM & Investment Strategy
The investment strategy is the most important factor for long-term investment success. With practical experience we support you in defining, periodically reviewing and refining your investment strategy – including the selection of asset classes, the calibration of bandwidths and rebalancing strategies, as well as choosing appropriate benchmarks.
ALM Study
Within an ALM Study we compare Assets and Liabilites. We take into account both the developments of funding requirements and the corresponding investment strategy. Our added value lies in conducting an in-depth analysis of liabilities developments across the individual portfolio of insured persons and pensioners.
Investment Strategy
We model investment strategies which make efficient use of the risk budget. To optimise the strategies, we realistically model the risk profiles of the asset classes and their interdependencies and test the strategies thoroughly against a variety of market scenarios. In doing so, we take into account the non-normal distribution of returns as well as non-linear dependencies between asset classes. We break down risk and performance drivers and analyse sensitivities (risks relating to equities, interest rates, credit, illiquidity, property and currencies).
Our work is based on sound scientific principles, is practice-oriented and free from conflicts of interest. However, we do not aim for purely model-driven optimisations along the efficiency frontier; instead, we critically examine the resulting allocations. The quantitative optimisation and analysis of the strategic options serve as the basis for further practical considerations.
The governing body benefits from a practical understanding of the characteristics of the strategies in different market environments. Together we can evaluate and refine investment strategies on-site (live simulation).
Based on our extensive proprietary data sources, we also assess the impact of changes in the investment strategy on asset management costs.
Bandwidths & Benchmarks
To implement the investment strategy and monitor its execution, it is essential that bandwidths and benchmarks are defined appropriately. We support clients with practical recommendations, extensive experience and insights from mandates and projects.
Sustainability
As part of the project, Complementa offers the opportunity to compare investment strategies regarding sustainability. The analysis is based on the ESG metrics set out in the ASIP ESG reporting standard recommendation.
Peer Group Analysis
For comparisons, we can draw on the largest database of pension fund peer groups, containing data dating back to 1994 and featuring up to 80 data sets per pension fund. We can make effective use of this data pool across client segments.
One-stop shop with dual Expertise
Access to expert knowledge: Within ALM projects, you have will benefit from the advice of both an investment consultant and a pension fund expert with many years of practical experience.
Research & Articles
Stresstesting
Risk Budget
Simulation of Liabilities
FX hedging