our SERVICES
Asset / Liability Management
Today's financial headlines are frequently dominated by stories of problems or decisions that ultimately stem from essential mismatches between promises to make future payments and the currently available assets available to achieve that anticipated funding.In the private and public pension fund area and in the area of healthcare plans for example, the direction of change in legal requirements and accounting standards is rapidly leading toward far more, and more accurate, disclosure of asset/liability relationships.These are and will have important impacts on current budgets and/or earnings, and promise to raise the volatility of these statements.For years, guiding such plans forward was largely an actuarial exercise accomplished through processes that seemed much like steering the path of the proverbial car while looking into the rearview mirror.Now, a clear view ahead is mandated to avoid potential financial calamity.
Our Sage asset/liability group makes use of proprietary software to provide clients with analytically-intensive solutions to funding issues.These solutions are designed to determine optimal paths to assure funding of liabilities through the efficient deployment and management of available assets. Our asset/liability group can model the projected cash flow requirements of client liabilities and those of asset portfolio cash flows using a wide variety of debt, equity, or alternative investment vehicles.We can analyze the results and suggest optimal strategies for rebalancing plan assets to best suit cash flow requirements and minimize funding costs.These analyses provide clients with projected, period by period, cash flows and needs, as well as portfolio risk characteristics within a dynamic market setting for multiple time horizons.