Consulting Services

Asset Allocation/Asset Liability Modeling

Asset modeling is an integral part of a full service consulting relationship. While various methods and approaches to asset allocation modeling are common, the effectiveness of any method or approach is dependent on the inputs used. The results of using a quantitative model are extremely sensitive to the projections on which the model relies. Modeling is a tool that can be manipulated to achieve certain predetermined results.

Asset Allocation Process

Asset Consulting Group, Inc. employs a mean variance optimization program which allows us to construct efficient portfolios, develop ranges of returns along with associated probabilities, project portfolios over predetermined time horizons, and analyze alternatives in a flexible manner.

ACG's asset allocation process starts with a comprehensive assessment of a plan's objectives, preferences and constraints. In this stage cash flow needs, actuarial functions, liquidity concerns, regulatory constraints, risk tolerances and the funding status are blended into a framework in which an asset allocation strategy can be formed.