NEPC, one of the industry’s largest independent, full-service investment consulting firms, has adopted RiskFirst’s risk analytics and reporting platform, PFaroe. PFaroe’s risk analytics will complement NEPC’s current offering by enhancing the firm’s daily monitoring capabilities.
In addition, the platform will allow for more effective implementation of customized asset allocation glide path strategies. In total, NEPC serves over 345 clients with total assets over US$925 billion.
Craig Svendsen, Partner and Head of the Corporate Defined Benefit team at NEPC, comments: “Many of our clients have customized glide paths for their asset allocations, and PFaroe offers tremendous value in that it can calculate funding status on a daily basis. The result is that we can recognise immediately when certain triggers have been breached, and then make timely asset allocation changes as appropriate. For most of our clients, this means selling assets from the return-seeking portfolio and buying assets in the liability-hedging portfolio, thus taking advantage of opportunities to reduce risk.”
Almost 75% of NEPC’s corporate DB clients have long duration strategies in their portfolios. In addition, since 2011, 73% of DB plans have developed a glide path with an additional 11% in the process of developing such a solution .
Matthew Seymour, Managing Director, RiskFirst, comments: “NEPC is a consultancy synonymous with thought-leadership and innovation, and was one of the very first industry adopters of LDI solutions. We are delighted to have seen how quickly NEPC have embraced the use of PFaroe and already started using it with some of the largest corporate DB pension plans.”