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Managers must heed storm warnings

Asset liability modelling needs to build on a longer-term viewpoint

Seasoned sailors generally find it a good idea to adjust their tack to take account of changing conditions.

The strange thing is that pension funds on a journey designed to deliver retirement income to their members have traditionally felt the need to revisit their investment strategy only once every three years through asset liability modelling studies. Changes to the strategic asset allocation that result have been made even more rarely.

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