• A client who wants to be protected from interest rate risk by investing in assets that match liabilities

Appropriate assets are chosen to mitigate all the interest rate risk related to the liabilities.

• A client who wants to be protected from interest rate risk by investing in assets that match liabilities
• At the same time wants exposure to assets that can outperform the liabilities

This approach is similar to the Cash Flow Matching strategy with an additional overlay layer that allows the client to have some exposure to real assets.

Although all the interest rate risk is mitigated, an active investment decision is made to also invest in assets other than interest bearing investments thereby resulting in some short-term market risk, but higher future expected increases.

• A client who wants to be protected from interest rate risk by investing in assets that match liabilities
• At the same time the client wants exposure to assets that allow the assets to outperform the liabilities

This strategy allocates assets between a Matching portfolio and a Growth portfolio. The Matching portfolio matches the client’s current liabilities mitigating all the interest rate risk, while the Growth portfolio determines the future increases.

The strategy is actively managed at all times to maintain the optimum allocation between the Matching portfolio and the Growth portfolio, thereby removing subjective investment decisions included in traditional enhancing cash flow matching or liability driven investment strategies.

• Retirement fund members who are within five years of retirement, who want greater certainty about their final retirement income and who want to link their income to inflation
• Defined benefit pension funds that want to reduce the uncertainty of the cost of purchasing a post-retirement income that grows with inflation, for members close to retirement

Preserves a member’s ability to purchase an inflation-linked annuity by closely matching movements in its benchmark index, the SALI Real, which tracks the changes in the cost of an inflation-linked annuity caused by changes in real interest rates.