Determination of investment strategy, asset liability management study

The aim of an asset liability management (ALM) study for grant-making foundations is to determine an investment strategy that is optimally tailored to the foundation’s risk capacity and tolerance. Our advisory concept delivers the following results:

Calculation of return targets

Guided by the foundation’s objectives, its financial obligations, proposed financial flows and liquidity requirements are analyzed. The return targets needed for the foundation to achieve its objectives are calculated.

Establishment and analysis of an efficient investment strategy

Using an optimization model, investment strategies are devised that achieve the investment targets with minimal risk (efficient strategies) assuming various scenarios. The possible strategies are represented, explained and assessed using various key management figures (including risk/return figures and loss probabilities).

Recommendation on the choice of investment strategy

ECOFIN makes a recommendation on the investment strategy and appraises the existing strategy on request, if necessary with recommended changes in strategy.