Solution delivers scenario and factor stress testing using multiple risk models
Northern Trust (Nasdaq: NTRS) has enhanced its asset and liability risk reporting to help its pension fund clients across the globe monitor their coverage ratio risk over different time horizons. The reporting uses multiple risk models to deliver scenario and factor stress testing data and is particularly appropriate for the Dutch market where it supports clients’ requirements for risk reporting compliant with FtK regulations.
The enhanced risk reporting solution includes advanced simulation techniques to project coverage ratio development over the coming year and enables clients to monitor mandate specific investment risk such as currency hedging strategies, equity style exposures and asset allocation. In addition, in-depth scenario analysis and stress testing enable clients to gain a better understanding of their asset and liability risks.
“Pension funds across the globe are facing a raft of new regulations which has resulted in an increasing demand for greater transparency, accuracy and a deeper level of analytics in risk reporting,” said Ian Castledine, global head of investment risk and compliance product for Northern Trust. “Northern Trust’s multi dimensional risk reporting solution leverages different analytical approaches to deliver a rich tapestry of analytics that help pension funds stay in control of their solvency risks.”
Northern Trust offer a variety of tailored risk and sensitivity analysis capabilities across the EMEA, Americas and Asia Pacific regions to meet changing client requirements. In line with Northern Trust’s Investment Risk and Analytical Services groups’ continuing efforts to provide clients with more optimal access to the risk and analytical tools needed to make investment decisions, it announced in August that it had enhanced the tools on its multi-faceted web portal, Passport® with more customisable features, faster performance, and integration of both ex post analytics and ex ante risk services.
