Financial market developments are completely unpredictable. Scenario thinking will help you identify real risks and tailor your investment strategy to what is actually happening.
Dynamic balance sheet policies reduce the risk of benefit cuts and non-indexation. However, by no means all funds pursue this rational risk policy, because it feels counterintuitive.
ALM emphasis quantitative results, but lacks any qualitative storylines. You need these storylines to flesh out scenarios and to help you understand what may happen. Paramount when it comes to preparing for an uncertain future.
