Ortec Finance is a worldwide leading Asset Liability Management (ALM) provider for pension funds. An ALM analysis aims to improve your understanding of pension dynamics to support strategic decision making and help you achieve your objectives . As an independent specialist, Ortec Finance offers consultancy services and software for modelling a pension plan’s assets, liabilities, and policy instruments (e.g. contributions) with its GLASS platform.
As a pension fund, you need to manage your balance sheet effectively in order to achieve long term objectives while dealing with short term constraints. You need to identify major risk sources and gain insight in the impact on future pensions, contributions, and funded levels. Based on the insight that ALM analysis provides, senior management and trustees can formulate a strategic policy that aims to achieve strategic objectives while reflecting the interests and risk appetite of all stakeholders.
The outcome of an ALM exercise is a strategic policy framework, including an integrated (dynamic) investment, contribution, and indexation 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 ALM simulation platform (GLASS), which replicates integrated long-term and short-term risks and returns.
GLASS platform supports investment decisions
With our ALM simulation software we take a total balance sheet approach This means 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 are committed to empowering our clients to manage the complexity of investment decision making. We believe that models in general – and scenario models in particular – are the most helpful tool to support this.
Experienced global service provider
- Leading ALM provider for pension funds around the world
- Extensive possibilities for investment strategy analysis, including derivatives (overlays), private asset classes, life cycle or target date funds, and more
- Expertise in configuring specific pension scheme and valuation rules
- Multinational approach enables aggregation of plans with differences in currency, accounting standards (IFRS, IAS, US GAAP and FRS) and regulatory requirements (nFTK, MFR, TLS, etc.)
Through Risk Assessment
- Monthly and annual simulations support the complete Strategic Risk Management framework for long-term and short term strategy formulation and evaluation in a consistent way
- One-of-a-kind economic scenario generator (DSG) and Ortec Finance Scenario set (OFS) with global coverage of more than 600 economic variables and benchmarks
- Sophisticated software and strategic pension advice, based on three decades of experience with our world-wide client base