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What does ALM stand for in asset management?

Asked by Anonymous Sep 02, 2026 0 views 1 answers
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Answered Sep 02, 2026

In the asset management and institutional investment industry, ALM stands for Asset-Liability Management. It represents an analytical and strategic process utilized to design investment portfolios that specifically match the future liabilities or payout obligations of clients, such as pension funds, endowments, or insurance companies. Rather than pursuing maximum speculative alpha, ALM prioritizes liability matching, duration control, and capital preservation to ensure all future financial commitments are met reliably.

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