Asset allocation fund

An asset allocation fund is a diversified UCITS that offers a predefined allocation distributed between shares and/or bonds and/or monetary instruments where each allocation corresponds to a defined and controlled level of risk.

Asset Liability Management (ALM) or Liability Driven Investment (LDI)

Asset/liability management, mainly within financial institutions, consists in comparing the profitability of shareholders’ equity with the principal financial risks incurred. With the help of financial analyses and modelling, it seeks to increase the knowledge and control of the principal financial risks to which the institution is exposed, in particular risks relating to transformation, liquidity, credit, interest rates and foreign exchange. These analyses should enable the institution to determine a policy around financing and allocation of assets, allowing optimisation of the relationship between the profitability of shareholders’ equity and the associated risks.

Asset management on behalf of third parties

This activity, for a company having obtained the requisite approval, consists in management of securities on behalf of customers. Asset management is carried out by the UCITS intermediary (collective asset management) or by asset management mandates (Dedicated asset management).

In relation to other types of asset management, alternative management may, by means of asset management techniques that make use of a very wide range of financial instruments, make investment or disinvestment decisions or arbitrages based on the analysis of many economic, financial or technical parameters such as, for example, the volatility of a market, its liquidity, its trends, relative spread with another market parameter, the credit rating of issuers of securities or the probability of an event.