ALIS solution suites

ALIS offers a variety of solutions and products that range from addressing individual components of the ALIS Concept to providing an integrated solution, where we develop a risk budget based on the plan’s liabilities, implement it and manage it on an ongoing basis to help the plan achieve its desired goals.

Our concepts and offerings centre around the following areas:

Hedging liabilities

We believe a plan should manage its real and nominal interest rate position and hedge its unrewarded risks. Under most market conditions, the duration mismatch between assets and liabilities can be reduced by the use of:

Generating efficient returns

To defease the liability as it evolves over time and manage the long-horizon economic cost of the plan, the plan should also focus on efficient return generation. The key words are diversification of beta, increasing alpha, better balance of alpha and beta. Among a broad range of investment solutions we list the following examples:

Managing according to an overall funding ratio objective

We combine hedging and return generation element in the ALIS integrated solution where we manage the overall plan according to a specified overall risk budget and a defined funding ratio objective. We dynamically manage the asset allocation between liability hedging and alpha return generation above the plan’s custom liability index returns. As the plan reaches its funding target, we de-risk the plan in order to better protect its funding level, for example by porting this alpha over to the liability hedging portfolio.

An affordable solution to closing the funding gap for UK pension schemes

The UBS AEGON Affordable Risk Transfer Solution (ARTS) is an innovative solution to closing the funding gap and removing longevity risk. ARTS combines buyout, administration, asset and risk management, delivered via the proven capabilities of two large and trusted financial institutions - UBS and AEGON.

For further information view the ARTS page.