Pension Fund Risk - APT Risk Model & Portfolio Analytics Solutions
APT's system is used by national, state and corporate pension funds, both for oversight/monitoring and directly for asset management - for every asset class and across all geographical regions.
APT's portfolio analysis system and risk models offer the pension fund comprehensive risk estimation & decomposition, portfolio construction tools, scenario and stress testing, and performance measurement.
Risk estimates are available based on robust, theory-driven foundations integrating:
- Statistical factors - for reliability
- Named factors - for intuitiveness, and
- Monte Carlo simulation - for handling extreme events
Profiles are estimated for all asset classes including:
- Equities
- Government bonds
- Corporate bonds
- Currencies
- Funds
- Hedge funds
- Futures options
- Real estate
- Commodities
Portfolios can be built or analyzed using any combination of these instruments, in any pools, packages or sub-funds, across single or multiple benchmarks. Profiles exist for almost every security in every major index - over 300,000 as of q2 2005 - which means the task of sourcing and cleaning data remains with APT.
Forecast models of market structure are available for:
- Short term (weeks) - for alternative investments or high risk satellite funds
- Medium term (months) - for standard equity and bond investments, or
- Long term (years) - for long term liability matches.
Risk can be decomposed by factors commonly used by institutional managers such as:
- Sectors, Countries and Styles - for equity managers
- Term structure factors and yield curve factors - for fixed income managers
- Macro factors used by economists or non-professional investors
- Any arbitrary factor selected or designed by the user, or requested by plan sponsors or trustees
- VAR breakdowns used by traders and some regulators
The software tools are designed to suit all types of users:
- With little quantitative experience but require comprehensive and reliable batch reports for all sub-funds, generated in-house for confidentiality reasons
- Who want technology outsourced, and require very large volumes of reports and analysis
- Who want to add analytics to their existing MS Excel® reports
- Who want to perform interactive portfolio analysis, and
- Who need to embed or integrate portfolio analysis software libraries with existing in-house software, 3rd party systems, or commonly-used data feeds
For those who want a 'one-stop' solution, APT can offer software integration services, as well as the technology itself, and can also arrange for the risk monitoring function to be carried out independently by expert consultants.
Pricing is modular & scaled, so you only need pay for what you use.
Take a look at what other software, risk models and portfolio analytics are available, or contact APT for a presentation, demonstration and example risk report for your fund or book.
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