Advanced Asset Liability Management (alm) For Pension Funds: Align Assets & Liabilities

Introduction:

Advanced Asset Liability Management (ALM) for Pension Funds equips professionals with advanced techniques to align assets with long-term liabilities. This course focuses on developing sophisticated ALM frameworks, utilizing dynamic modeling, and implementing strategies to mitigate interest rate and longevity risks. Participants will learn to analyze complex liability structures, optimize asset allocation, and ensure the long-term financial stability of pension funds. By mastering advanced ALM, professionals can enhance risk management and improve the resilience of pension portfolios.

Target Audience:

This course on Advanced Asset Liability Management (ALM) for Pension Funds: Align Assets & Liabilities is designed for professionals involved in pension fund management, risk management, and actuarial analysis. This includes Pension Fund Managers, Actuaries, Risk Managers, Investment Analysts, Portfolio Managers, Treasurers, Consultants, Financial Analysts, Compliance Officers, and Trustees. These individuals require expertise in advanced ALM to effectively manage pension fund liabilities and optimize asset allocation.

Course Objectives:

• Understand the principles and objectives of advanced ALM for pension funds.
• Develop sophisticated ALM frameworks and modeling techniques.
• Analyze complex liability structures and their impact on asset allocation.
• Implement dynamic ALM strategies to mitigate interest rate and longevity risks.
• Understand the role of stochastic modeling and scenario analysis in ALM.
• Analyze the impact of regulatory changes on ALM strategies.
• Implement techniques for optimizing asset allocation based on liability characteristics.
• Understand the integration of ALM with strategic risk management.
• Develop strategies for communicating ALM results to stakeholders.
• Evaluate and improve the effectiveness of ALM strategies in pension fund management.

DURATION

10 Days

COURSE CONTENT

Module 1: Introduction to Advanced ALM for Pension Funds

• Overview of advanced ALM and its significance in pension fund management.
• Understanding the limitations of traditional ALM approaches.
• Introduction to key concepts and terminology in advanced ALM.
• Setting the stage for developing sophisticated ALM frameworks.

Module 2: Principles and Objectives of Advanced ALM

• Analyzing the core principles and objectives of advanced ALM.
• Understanding the role of strategic asset allocation and liability-driven investing (LDI).
• Examining the importance of integrating risk management and investment strategies.
• Developing a foundational understanding of advanced ALM.

Module 3: Developing Sophisticated ALM Frameworks

• Implementing techniques for developing sophisticated ALM frameworks.
• Understanding the role of integrated risk management and performance measurement.
• Analyzing the impact of data quality and modeling assumptions.
• Developing strategies for creating robust and adaptable ALM frameworks.

Module 4: Modeling Techniques for Advanced ALM

• Implementing advanced modeling techniques in ALM (stochastic modeling, dynamic financial analysis).
• Understanding the role of simulation and scenario analysis.
• Analyzing the impact of model complexity and calibration.
• Developing methodologies for building and validating ALM models.

Module 5: Analyzing Complex Liability Structures

• Understanding the complexities of pension fund liability structures (defined benefit, hybrid plans).
• Analyzing the impact of demographic trends and longevity risk.
• Examining the role of liability valuation and sensitivity analysis.
• Developing techniques for modeling and analyzing complex liabilities.

Module 6: Dynamic ALM Strategies for Interest Rate and Longevity Risks

• Implementing dynamic ALM strategies to mitigate interest rate and longevity risks.
• Understanding the role of hedging and risk transfer mechanisms.
• Analyzing the impact of interest rate swaps, longevity bonds, and other derivatives.
• Developing strategies for managing dynamic risk exposures.

Module 7: Stochastic Modeling and Scenario Analysis in ALM

• Understanding the role of stochastic modeling and scenario analysis in ALM.
• Analyzing the impact of market volatility and economic shocks.
• Examining the use of stress testing and extreme scenario simulations.
• Developing strategies for evaluating ALM performance under various scenarios.

Module 8: Impact of Regulatory Changes on ALM Strategies

• Analyzing the impact of regulatory changes on ALM strategies (funding requirements, accounting standards).
• Understanding the role of regulatory reporting and disclosure.
• Examining the impact of evolving regulations on ALM practices.
• Developing strategies for adapting ALM to regulatory changes.

Module 9: Optimizing Asset Allocation Based on Liability Characteristics

• Implementing techniques for optimizing asset allocation based on liability characteristics.
• Understanding the role of liability-driven asset allocation and matching strategies.
• Analyzing the impact of asset class correlations and diversification.
• Developing methodologies for creating optimal ALM portfolios.

Module 10: Integration of ALM with Strategic Risk Management

• Understanding the integration of ALM with strategic risk management.
• Analyzing the role of enterprise risk management (ERM) and risk governance.
• Examining the impact of ALM on overall risk profile and strategic objectives.
• Developing strategies for seamless integration with other risk management functions.

Module 11: Communicating ALM Results to Stakeholders

• Developing effective communication strategies for reporting ALM results to stakeholders.
• Understanding the role of ALM reports and performance dashboards.
• Analyzing the impact of communication on stakeholder perceptions.
• Developing strategies for transparent and timely reporting.

Module 12: Evaluating and Improving ALM Effectiveness

• Implementing techniques for evaluating and improving the effectiveness of ALM strategies.
• Understanding the role of performance measurement and attribution analysis.
• Analyzing the impact of ALM on funding ratios and solvency.
• Developing strategies for continuous improvement and innovation.

Module 13: Advanced Techniques for Liability Hedging

• Understanding advanced techniques for liability hedging (contingent immunization, cash flow matching).
• Analyzing the role of complex derivative strategies and structured products.
• Examining the impact of basis risk and counterparty risk.
• Developing strategies for sophisticated liability hedging solutions.

Module 14: Case Studies and Best Practices in Advanced ALM

• Analyzing real-world case studies of successful advanced ALM implementations.
• Learning from best practices across different pension funds and regions.
• Identifying key lessons learned and challenges in implementation.
• Discussing the role of innovation and adaptation.

Module 15: Future Trends and Action Planning for Advanced ALM

• Exploring emerging trends and opportunities in advanced ALM (AI-driven modeling, real-time analytics, ESG integration).
• Developing action plans for advancing advanced ALM within pension funds.
• Analyzing the role of individual and collective action.

Training Approach

This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.

Tailor-Made Course

This course can also be tailor-made to meet organization requirement. For further inquiries, please contact us on: Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Training Venue

The training will be held at our Skills for Africa Training Institute Training Centre. We also offer training for a group at requested location all over the world. The course fee covers the course tuition, training materials, two break refreshments, and buffet lunch.

Visa application, travel expenses, airport transfers, dinners, accommodation, insurance, and other personal expenses are catered by the participant

Certification

Participants will be issued with Skills for Africa Training Institute certificate upon completion of this course.

Airport Pickup and Accommodation

Airport pickup and accommodation is arranged upon request. For booking contact our Training Coordinator through Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Terms of Payment: Unless otherwise agreed between the two parties’ payment of the course fee should be done 5 working days before commencement of the training.