Pensions

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Summary

The influence that the result of the asset management gives to the finance situation of these pension plans is a very big thing. The characteristic of the pension asset management is that the investment period is for long time and also to accompany cash flow. There is a fluctuation factor exists in the cash flow in a pension plan.

What is the risk for a defined benefit pension plan? It is very important to define the risk clearly for asset management.

Now the general ALM analysis is popular and effective but we will need the model to consider the term structure of pension liability.

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