Enhance performance

  • Improve targeting of performance within an agreed risk framework
  • Manage downside risks
  • Optimize portfolio growth while maintaining targeted spend

An in-house investment team or CIO can leverage the resources of PFaroe to provide a powerful framework within which performance can be optimised while managing the impact of downside risk on an endowment’s corpus and spending needs. Depending on how the organisation measures success, a risk framework can be defined in terms of objectives relating to spending goals, portfolio real value and performance relative to a policy portfolio, among others.

CIOs can test policy portfolios and optimise fund strategies and managers, employing a number of techniques from “What if?” scenario testing through to powerful stochastic modelling using a sophisticated economic scenario generator.

Alternative investments are included for a holistic view of the portfolio. Multiple types of spending formulae are built in, which, together with the asset inputs, automatically produce a comprehensive suite of spending, asset and risk analytics, allowing CIOs to test investment solutions from multiple perspectives. Developments in technology and methodologies since the financial crisis allow PFaroe to offer sophisticated modeling that was previously beyond the reach of only the largest endowments and foundations.

Read more

Capitalise on market opportunities

  • Be more responsive to market dislocations
  • Quickly review new managers or investment strategies
  • Devise investment strategies responsive to market events or economic scenarios

CIOs are empowered through real-time analysis, allowing them to react far quicker to investment opportunities and market dislocations. Strategic plans can be evaluated and implemented to deal with different market events.

For example, in the event that the endowment’s value or spending falls below a certain level, PFaroe can help map out the best investment strategy going forward.

PFaroe is nimble and interactive, providing the CIO with a competitive advantage over peers, strengthening the value proposition of the in-house team.

Read more

Capitalise on market opportunities

  • Be more responsive to market dislocations
  • Quickly review new managers or investment strategies
  • Devise investment strategies responsive to market events or economic scenarios

CIOs are empowered through real-time analysis, allowing them to react far quicker to investment opportunities and market dislocations. Strategic plans can be evaluated and implemented to deal with different market events.

For example, in the event that the endowment’s value or spending falls below a certain level, PFaroe can help map out the best investment strategy going forward.

PFaroe is nimble and interactive, providing the CIO with a competitive advantage over peers, strengthening the value proposition of the in-house team.

Read more

Deliver operational efficiency

  • Speed up the Board reporting cycle
  • Focus on managing the portfolio and not number crunching
  • Improve response time to stakeholder queries
  • Automate tailored reporting

PFaroe’s regular, easy-to-access analytics allow CIOs to monitor and report on their investment portfolio and risk efficiently and effectively. Asset allocation exercises become less cumbersome. Seamless ex-ante analytics can be applied to test new managers or fund strategies. Monitoring and reporting on portfolio risk and spending implications can be performed more frequently and seamlessly.

PFaroe’s reporting capabilities are powerful and comprehensive, providing a potential platform for front-to-back reporting needs. PFaroe can generate impressive tailored reports for monthly/quarterly Board reporting requirements, on-demand and at the click-of-a-button.

Read more

Improve governance and mission delivery

  • Avoid surprises and costly mistakes
  • Inform discussion with fund managers and external advisors
  • Access better analytics over in-house models
  • Improve budgeting at the CFO level

PFaroe shows the likelihood of endowments or foundations delivering on their mission through deterministic and stochastic projections of their portfolio’s spending contribution to the organisation’s budget.

The CIO is empowered by illustrating the direct impact of investment decisions on these financial goals. Gifting patterns and capital campaigns can be incorporated to provide the organisation with more confidence in budgeting and mission delivery.

Disparate systems and services can be rationalised through implementation of PFaroe, saving time and money, while manual intervention is eliminated, improving security and minimising the risk of errors.

Read more

Improve governance and mission delivery

  • Avoid surprises and costly mistakes
  • Inform discussion with fund managers and external advisors
  • Access better analytics over in-house models
  • Improve budgeting at the CFO level

PFaroe shows the likelihood of endowments or foundations delivering on their mission through deterministic and stochastic projections of their portfolio’s spending contribution to the organisation’s budget.

The CIO is empowered by illustrating the direct impact of investment decisions on these financial goals. Gifting patterns and capital campaigns can be incorporated to provide the organisation with more confidence in budgeting and mission delivery.

Disparate systems and services can be rationalised through implementation of PFaroe, saving time and money, while manual intervention is eliminated, improving security and minimising the risk of errors.

Read more

Features

Dashboard

Dashboard

A snapshot of the endowment or foundation’s portfolio value, asset allocation and risk attributes – key information for all stakeholders.

More  Less  

Asset value and breakdown

  • Daily portfolio value history
  • Segmentation by asset type

Risk summary

  • Portfolio value at risk (VaR)
  • VaR attribution broken down into component risk factors
  • User-selected confidence intervals for displaying VaR results
  • Key market stress scenarios
Assets

Assets

Monitor portfolio holdings and assess the impact of changing market conditions.

More  Less  

Automatic monthly valuations

  • Breakdown by fund holding
  • Attribution of monthly changes in portfolio value by underlying risk factor

Asset cashflow projections

  • View and analyse asset cashflow projections

“What-if?” stress testing

  • Stress test asset cashflows and portfolio value
  • Shock economic conditions including inflation rates, interest rates, etc.
  • Test alternative asset allocations; add additional benchmarks or custom funds
Risk

Risk

Analyse risk attributes and align the investment portfolio with risk and return objectives.

More  Less  

VaR attribution and distribution

  • Generate value at risk (VaR) and attribute by risk factor and asset type
  • Drill into individual risk factors and view the full distribution and summary risk statistics
  • Underpin the forecast with RiskFirst’s powerful economic scenario model or input your own

Analysis of historical market events

  • Observe the impact on the portfolio value of historical financial crises (e.g. Credit Crunch, Bursting of Dot-Com Bubble, etc.)

“What-if?” stress testing

  • Calculate the portfolio risk and return trade-off by testing different asset allocations or the impact of adding or subtracting specific managers, funds or strategies
  • Optimise the risk and return for asset allocation or manager selection exercises
Forecasting

Forecasting

Perform powerful forecasting of portfolio value and the endowment’s spending contribution to the organisation. Analyse the impact of highly customisable investment strategies over time.

More  Less  

Powerful forecasting

  • Generate and analyse portfolio and spending projections on a stochastic or user-defined basis
  • Underpin the forecast with RiskFirst’s powerful economic scenario model or input your own
  • Drill down into forecasting details on a scenario-by-scenario basis

Spending and gifting studies

  • Define spending formula specific to the organisation
  • Optimise spending through “What-if?” analysis of different spending formulae
  • Add gifts and factor in capital campaigns

Evaluation of the optimal investment portfolio

  • Set the asset allocation to rebalance over time in accordance with a number of sophisticated trading strategies
  • Incorporate custom assets, asset allocation solutions and manager strategies

Implementation and testing of investment strategies

  • Review user-defined stress tests impacting specific funds or macro strategies
  • Stress specific economic factors such as inflation rates
  • View the resulting impact on the portfolio and spending requirements
Custom asset modelling

Custom asset modelling

Model and maintain custom asset classes – from public funds, ETFs, and alternatives including hedge funds and private equity.

More  Less  

Funds of funds

  • Create unique blends of asset classes using PFaroe default benchmarks
  • Define client-ready public funds and ETFs

Alternatives

  • Replicate complex fund strategies by regressing a return series against a chosen set of risk factors
Reporting

Reporting

Instantly create client-ready PowerPoint or Excel templates.

More  Less  

Automated client reports

  • Load client-ready PowerPoint templates into PFaroe
  • Extract valuable information on a timely basis for client reports

Detailed internal benchmarking

  • Extract key cross-client information into Excel for quick analysis
  • Easily benchmark your book of business’s summary risk factors such as VaR, stress results, portfolio returns, Sharpe ratios, etc.

Bulk processing for business efficiencies

  • Easily automate the production of bulk reports for clients with similar reporting needs across all their plans

Product Matrix

Pension Plans Endowment & Foundations Consultants Investment Managers
PFaroeDB
PFaroeE&F
PFaroeAttribution
iSTOXX RiskFirst LDI Indices