How much risk are you incurring and how does it compare to your peers?
CEM measures and compares two types of risk:
- Asset-Liability Mismatch Risk. This is the biggest risk that pension funds incur. We calculate this risk by modeling your pension liabilities on a mark-to-market basis. We show how this risk can impact your funded status.
- Implementation Risk. This is the risk of active management.
What is your 'neutral' liability matching asset mix and what can you learn from it?
Our research shows that in-spite of expensive asset-liability studies, liabilities tend to be overlooked when formulating asset mix policy. For example, the graph on the right show that the policy asset mix of funds with high inflation sensitivity tends to be almost identical to funds with low inflation sensitivity. Our analysis models your 'neutral' liability matching asset mix and help you develop an intuitive understand of assets that will decrease or increase your risk profile.
Key Analysis