Asset Liability Modelling & Liability-Driven Investing

Asset Liability Modelling & Liability-Driven Investing

Our Approach

Aligning Assets with Long-Term Liabilities

Effective investment strategies must be aligned with a fund’s long-term liabilities. Selekane conducts stochastic asset liability modelling to assess how different strategies impact funding outcomes over time.

Our modelling framework integrates financial, actuarial, and demographic data to support informed strategic decision-making.

Analysis

Liability Analysis

Member Demographics

Analyse member profiles to understand contribution patterns, retirement timelines, and liability structure.

Cash Flow Modelling

Project inflows and outflows to ensure liquidity needs are met across different scenarios.

Actuarial Assumptions

Incorporate funding levels, discount rates, and actuarial projections into strategic planning.

Liquidity Planning

Assess liquidity requirements to ensure the portfolio can meet short- and long-term obligations.

Regulatory Constraints

Factor in regulatory requirements that impact asset allocation decisions.

Risk Tolerance

Align strategy with the fund’s ability and willingness to absorb risk.

Outcome

A strategic asset allocation aligned to long-term liabilities, improving funding stability, liquidity planning, and the ability to meet future obligations.