Asset/Liability management has almost exclusively focused upon asset growth. While current liabilities can be immunized through techniques such as Liability Directed Investment (LDI), there is still risk that assets will not be enough to cover new liabilities as the work force of a firm increases, wages rise, and longevity increases. Equities rise with economic growth and so hedge against future liabilities that come from growth in the underlying business of the fund’s participants. Equities supply an engine of growth so that a fund’s assets can grow at a rate that matches the actuarial assumptions of growth necessary to meet future liabilities. So, a portfolio of equities is an important part of managing future liabilities. But what of current liabilities? Liabilities change as the discount rate fluctuates wit
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