Asset allocation decisions need to be made with a clear and thorough understanding of how the organization's liability is growing. We use our own internally-developed, proprietary systems to conduct asset / liability studies using data from our client's actuary. We must determine the growth rate of the liabilities to discover how fast our clients' assets must grow and determine a rate of return objective. LCG's asset / liability studies answer the following questions:
- What is the plan's current and historical funded status?
- What is the growth rate of the plan's liability?
- What are future contributions and payout trends?
- Will an asset allocation discipline keep the plan adequately funded?
- Are changes to the plan's asset allocation policy warranted?