Global client base, optimized investment strategies and integration of regulatory framework & liabilities
One of the key decisions for any asset owner is strategic asset allocation and, with the ever-growing number of asset classes and investment strategies, this decision is becoming increasingly complex. Ortec Finance believes that economic models can play a supporting role in making this decision, which is why we offer both software and services in this area. Our Finance Scenarios give you access to highly realistic scenarios for a wide range of asset classes, while our software provides you with useful optimization and risk decomposition tools to create the best portfolios.
The CIO and Investment Board of any asset owner should be able to assess the key investment decisions by analyzing the relevant risk and return metrics of various (dynamic) investment strategies for appropriate horizons, and test the robustness of these investment strategies under different economic conditions. Ortec Finance supports these processes by providing a sound framework for the design and testing of different investment strategies and strategic asset allocations on its platform.
GLASS is a leading asset and liability management solution for institutional investors globally, providing simulation software to enhance strategic risk management and investment decision-making. GLASS enables decision makers to optimize the return from investment strategy for multiple horizons while taking into account the solvency framework, liabilities and defined market risk budgets. We leverage decades of institutional expertise by using broad, granular asset modeling and investment strategies & overlays, powered by our superior real-world scenarios.
Economic Scenario Generator for balanced strategic asset allocation
The strategic asset allocation decision is becoming increasingly complex as a result of the ever-growing number of asset classes and investment strategies. How do you deal with public and private asset classes scattered across different regions and with different sub-asset classes? Ortec Finance created the Economic Scenario Generator, a framework that includes all the different (sub-) asset classes and creates a level playing field, which allows you to design a carefully balanced (dynamic) asset allocation.
To ensure that the strategic asset allocation is aligned with the strategic objectives and risk tolerance, the asset allocation analysis is included in our broader GLASS platform, which also comprises potential liabilities, regulatory frameworks (e.g. Solvency II) and other policy instruments (e.g. contribution policy).
Recently the variable pension law was passed, which allows participants in a premium contract or capital agreement to choose a variable, venture capital pension.
Together with Ortec Finance, DSM tried to objectively
compare the two variants, i.e. the Pension Fund variant and the variable retirement
benefit, for the net pension arrangement with the specific composition and financial
position of DSM, and to see where the added value lies.
Willemijn Verdegaal is speaking at The Economist’s Climate Risk Europe
Aligning a portfolio to net-zero targets does not necessarily mitigate all climate-related financial risks. What other material risks should you be addressing? What are the main risk drivers and what analysis tools can best quantify both portfolio temperature scores and financial risks? What are the strengths and limitations of low-carbon benchmarks?
Last month’s IPCC report should be a call to action for investors - an incentive to start by creating net zero aligned and climate resilient portfolios. Portfolios need to be adapted to extreme weather and a disorderly transition. It is wonderful to see that many of our clients have already started on this journey. However, thinking through the financial impacts of various climate risk scenarios and creating a net-zero roadmap may feel somewhat overwhelming.