PFaroe represents a step-change for the industry and allows IPS to bring risk considerations to the centre of the investment process.

Invensys Pension Scheme

Win more business

  • Gain a competitive edge
  • Demonstrate compehensive understanding of liabilities
  • Create more impressive pitches
  • Promote solutions more effectively and efficiently
  • Educate prospects on risks

PFaroe enables asset managers to deliver impressive and engaging pitches to schemes via a user-friendly web-based interface, providing interactive and intuitive analysis on schemes’ actual funding and risk positions.

By using PFaroe, asset managers can demonstrate a comprehensive understanding of a scheme’s liabilities and risks. This provides scheme stakeholders with the confidence to act decisively when awarding new mandates.

Asset managers can discuss asset allocation and consider the impact of different asset strategies in a live environment, using What If? scenario testing. PFaroe goes further, allowing asset managers to model their pooled and segregated funds for inclusion in the analytics.

PFaroe‘s full suite of analytics is easy to set-up and can be generated from publicly available accounting information. Alternatively the analytics can use nonpublic client data inputs ranging from summarised asset and liability information, through to detailed modelling of individual securities and members. This allows asset managers to create impressive pitches based on the information available.

Win more business

Structure better solutions

  • Create better matched portfolios
  • Test solutions from multiple perspectives

Structuring portfolios using better liability information and analytics allows asset managers to produce solutions that better match the needs of schemes.

PFaroe allows detailed liability cashflows to be input by asset managers or scheme actuaries. Asset analytics can be generated using benchmark assets, an asset manager’s own funds and/or from assets modelled at security level. From these liability and asset inputs, PFaroe automatically and efficiently produces a comprehensive suite of liability, asset and risk analytics on consistent bases, allowing asset managers to interrogate and test solutions from multiple perspectives.

Some of the key analytics provided by PFaroe are:

  1. User-driven, real-time stress testing of assets, liabilities and associated cashflows.
  2. Automatic generation of interest rate and inflation sensitivities (PV01 and IE01).
  3. Monte Carlo VaR and ALM projections with real-time testing of alternative investment policies.
  4. Re-valuation of liabilities using user-defined discount and inflation curves.
Structure better solutions

Enhance reporting and monitoring

  • Monitor effectiveness of solutions
  • Report more efficiently to clients
  • Improved client governance
  • Retain clients

PFaroe’s regular, easy-to-access analytics allow asset managers and their clients to frequently monitor and report on a scheme’s risk and funding position efficiently and effectively. PFaroe assists asset managers to engage more closely with their clients in an interactive way and to evolve solutions over time, enriching established client relationships.

PFaroe’s analytics allow asset managers to regularly test the effectiveness of risk management strategies. User-friendly analysis dramatically increases the understanding and engagement of clients.

PFaroe’s analytics and functionality are continually evolving to meet the needs of pension schemes and asset managers.

Enhance reporting and monitoring