... methods are variations and extensions on basic mean-variance mathematics Constrained Black-Litterman solves for market consensus expected return by asset class The manager can then view and selectively... have the specifically measurable, dateable liabilities to support the ALM approach In contrast, ALM is the appropriate approach for defined benefit, insurance companies, and banks Point C is also... EF are generated These average asset allocations are more stable in that their makeup is less likely to change and less portfolio rebalancing will be required over time for minor changes in market