Match the cash flow before reaching for yield
Apply liability-driven thinking to separate known cash-flow needs from return-seeking assets.
timeline Committee agenda A known invoice is competing with the temptation to keep earning equity returns. The renovation date is fixed; market returns are not. LDI sequence Liability first, surplus second Match the cash-flow requirement before deciding how much capital can seek return. Shortcut Keep the money where yield looks highest The obligation is funded before the surplus portfolio takes risk. A liability-driven reserve is judged by payment reliability, not by beating the growth portfolio. 01 Define liability 02 Pick match 03 Invest surplus Step 1
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