The Challenge
A corporate pension fund with ₫850 billion in assets faced declining funding ratios and suboptimal asset allocation heavily weighted toward domestic bonds. The investment committee sought to modernize their approach while maintaining prudent risk management.
Our Solution
We conducted comprehensive asset-liability modeling, developed updated capital market assumptions, and designed a more efficient strategic asset allocation. We then supported the implementation including manager selection for new asset classes and transition management.
The Results
The new allocation improved expected returns by 180 basis points annually while reducing portfolio volatility by 25%. The funding ratio improved from 82% to 91% over three years, and the fund established a robust governance framework with ongoing monitoring.