Pensions and Retirement Training Course on Asset-Liability Matching (ALM)
Master Pensions Retirement Training with expert training. 10 Days course with certification. Comprehensive training program. Online & in-person. Enroll now!
Pensions And Retirement Courses10 DaysCertificate Included
Duration
10 Days
Mode
Online & Physical
Certificate
Included
Language
English
Course Overview
This intensive course provides pension professionals with an in-depth understanding of Asset-Liability Matching (ALM) — a critical framework for aligning pension fund investments with future benefit obligations. Participants will learn how to assess liabilities, manage investment risks, construct balanced portfolios, and ensure the long-term financial sustainability of pension schemes. The course integrates financial theory with practical case studies, regulatory insights, and quantitative modeling techniques to help participants develop robust ALM strategies tailored to both defined benefit (DB) and defined contribution (DC) schemes.
Secure enrollment • Professional certificate included
Learning Objectives
By the end of this course, participants will be able to:
Understand the principles, purpose, and importance of ALM in pension fund management.
Analyze pension fund liabilities using actuarial and financial models.
Link investment strategies to liability structures and funding objectives.
Implement risk-based approaches to ALM and funding policy.
Design investment portfolios aligned with long-term obligations and risk appetite.
Apply scenario analysis, stress testing, and sensitivity analysis to ALM strategies.
Use quantitative tools to project funding ratios and solvency levels.
Integrate ESG, inflation, and interest rate factors into ALM modeling.
Understand regulatory, accounting, and governance implications of ALM.
Develop and present a practical ALM strategy for a pension fund.
Course Content
Module 1: Fundamentals of Asset-Liability Management Overview and importance of ALM in pension funds ALM in defined benefit vs. defined contribution plans Relationship between assets, liabilities, and funding ratios Core principles of matching duration, cash flows, and risks The role of ALM in strategic investment decisions Global best practices and case studies in pension ALM Module 2: Understanding Pension Liabilities Nature and characteristics of pension liabilities Actuarial valuation methods and assumptions Discount rate selection and its impact on liabilities Sensitivity of liabilities to economic and demographic factors Funding levels and solvency measures Workshop: Calculating present value of future pension obligations Module 3: Asset Modeling and Characteristics Asset classes and their risk-return profiles Duration, convexity, and yield curve dynamics Inflation-linked assets and liability hedging instruments Liquidity and cash flow characteristics of investment assets Matching investment horizons to pension obligations Case study: Evaluating asset characteristics in ALM context
Module 4: ALM Strategies and Techniques Immunization and duration matching strategies Cash flow matching vs. surplus optimization approaches Static vs. dynamic ALM techniques Contingent immunization and derivative-based hedging Rebalancing strategies for maintaining asset-liability balance Simulation exercise: Designing an ALM strategy for a DB scheme Module 5: Risk Management in ALM Identifying and quantifying ALM risks: market, longevity, interest rate, and inflation risk Hedging tools: swaps, options, and futures in ALM Diversification and risk budgeting Funding volatility management Scenario and stress testing frameworks Developing a risk register for ALM governance
Module 6: ALM Models and Quantitative Techniques Overview of deterministic and stochastic ALM models Monte Carlo simulation and scenario-based forecasting Modeling interest rate and inflation dynamics Liability-driven investment (LDI) modeling Using software tools for ALM optimization Workshop: Building a simplified ALM model in Excel Module 7: Regulatory, Accounting, and Governance Frameworks Regulatory expectations for ALM under pension supervision frameworks IFRS and actuarial standards related to pension liabilities Governance structures supporting ALM decisions Role of trustees, actuaries, and fund managers in ALM oversight Reporting and disclosure requirements for ALM policies Case study: ALM governance framework in a regulated pension fund Module 8: Integrating ESG and Sustainability into ALM ESG and climate-related risks in long-term asset-liability projections Sustainable investment and liability matching Managing transition and physical climate risks Incorporating social and governance factors in funding assumptions ESG-aligned LDI strategies Practical exercise: Integrating ESG metrics into ALM models Module 9: Monitoring, Evaluation, and Performance Measurement Establishing ALM performance indicators Monitoring funding ratios and solvency positions Periodic ALM review and rebalancing cycles Communication and reporting to stakeholders Aligning ALM reporting with risk management frameworks Workshop: Creating an ALM monitoring dashboard Module 10: Practical Application and Case Study Workshop End-to-end ALM strategy development and presentation Case analysis: ALM implementation in multi-employer pension schemes Reviewing ALM policy documents and reporting templates Developing ALM improvement plans Peer review and critique session Course wrap-up, assessment, and certification
Who Should Attend
Pension fund managers, trustees, actuaries, financial analysts, investment officers, risk managers, regulators, portfolio strategists, and policymakers involved in pension fund investment and liability management.
