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Defined-Benefit ALM measures the market risk exposure of a pension fund, allowing for the specific detail of investment strategy, funding strategy, and pension liabilities. It empowers the investment manager to identify individual risk factors, and perform at-a-glance analysis of the specific risk exposures confronting the fund.
- Access consistent projections of assets and liabilities over multiple periods, using your choice of highly flexible rebalancing methods, including dynamic rebalancing options.
- Gain full access to model parameters, supported by a comprehensive suite of calibration tools and a wide range of user-selectable output variables.
- Model multiple funds across multiple economies, each with full coverage of interest rates and asset classes, including equity, property, credit, and alternatives.
- Value liabilities based on government, swap, or corporate curves; limited price indexation; different pre- and post-retirement increase types; and granular modeling of accruals at the tranche level.
- Model pooled, liability-driven investment (LDI) funds and various equity, interest rate, and inflation derivatives, including limited price index (LPI) swaps.
- Quantitatively compare alternative asset allocation strategies and their impact on funding levels and surpluses.
- Assess how investment strategy influences deficit recovery schedules and contribution levels.
- Design and test the effectiveness of hedging strategies using a comprehensive array of derivative instruments, including LPI swaps.
- Investigate the impact of potential de-risking strategies, including dynamic rebalancing.
- Understand the impact of more frequent monitoring by projecting using monthly time steps.
Moody's Analytics economic scenario and asset-liability modeling offerings support investment design and risk management activities.
Moody's Analytics solution enables defined benefit pension managers to design investment strategies and investigate funding solutions to secure their objectives.