ALM Sovereign WealthfundsManage your assets and liabilities in a coherent manner
ALM Simulation Software enables future projections
With our ALM simulation software we take a total balance sheet approach, meaning that assets, liabilities, and all policy instruments are consistently projected into the future, including the modelling of regulatory requirements. This enables the user to understand the risk and return consequences of decisions more clearly. We use our state-of-the-art Dynamic Scenario Generator (DSG) to provide consistent, realistic, and up to date stochastic scenarios with a worldwide coverage for long-term, mid-term, and short-term horizons. The Ortec Finance Scenario set (OFS) underlies all our forward looking solutions , for institutional as well as private investors.
Strategic uses of ALM analyses
The outcome of an ALM exercise is a strategic policy framework,. This includes an integrated (dynamic) investment policy which takes into account the relevant regulatory requirements. You can also use an ALM analysis to support a more detailed specification of a policy instrument, such as an investment policy analysis to address various allocation and hedging strategies, new and alternative asset classes, leverage, derivatives, life cycle or target date funds, and more.
A specification of the strategic policy refers to the first steps of the Strategic Risk Management framework. Over time, changes in financial position or market circumstances will affect the feasibility of your strategic objectives and the risk budget. This requires continuous evaluation of the strategy referred to as Strategic Risk Management. For this purpose, Ortec Finance offers a consistent ALM simulation model (GLASS), which replicates integrated long and short-term risks and returns. ALM studies provide insight which allows senior management and trustees to formulate a strategic policy that aims to achieve strategic objectives, reflecting the interests and risk appetite of all stakeholders.
ALM analysis provides the basis for clear and open communication with all stakeholders.
Complete Modeling Framework
- Consistent and flexible modelling of future development of assets and liabilities
- Monthly and annual simulation frequency
- High-quality economic scenario generator (DSG) which includes more than 400 variables covering both public and private asset classes across all major regions
- What-if capabilities and optimization engine • Global coverage on liability modelling
- Multinational approach enables aggregation plans with differences in currency, accounting standards (IFRS, IAS, US GAAP and FRS), and regulatory requirements (Solvency II, nFTK, MFR, TLS, etc.)
- Intuitive user interface to design and run a large variety of analytics
- Full control on all assumptions and advanced reporting possibilities
- Graphical tools to quickly queryresults and analyse outcomes
- User-friendly flexible software, customized to the client’s needs