Northern Trust has enhanced its asset and liability risk reporting to help pension fund clients monitor their coverage ratio risk over different time zones. The reporting uses multiple risk models to deliver scenario and factor stress testing data.
The enhanced risk reporting solution includes 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. Scenario analysis and stress testing features 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,” says Ian Castledine, global head of investment risk and compliance product for Northern Trust.