What is an Asset Liability Model?

Asset Liability Management (ALM) is an integrated investment approach that jointly manages and optimises both the assets (how the capital is invested) and the liabilities (the future obligations) of an organisation or individual. At Vive, we use ALM under the bonnet to find the optimal investment mix for each individual pension pot, taking into account:

The member's age and remaining term.

Risk profile (defensive, neutral, offensive).

Current interest rate and market developments.

This provides every member – and therefore every employer – with the best possible balance between return and security, completely tailored to their personal situation.