Nuveen will use RiskFirst’s web-based analytics platform, PFaroe, to help craft and deliver customized investment strategies to institutional clients, particularly defined benefit pension plans, as the company anticipates a $1 trillion move from equities to long duration bonds over the next five years.
RiskFirst today announced that multi-asset class investment manager, Nuveen Asset Management, has adopted its award-winning PFaroe platform to help support Nuveen’s efforts in the liability driven investment (LDI) space. The product will be specifically used by Nuveen Asset Management’s recently formed Institutional Solutions Group to help craft and deliver customized investment strategies to defined benefit pension plans, public funds, foundations and endowments, insurance companies and other institutional investors.
“Over the next five years, we expect a $1 trillion move from equities to long duration bonds, as corporate pension plans implement LDI strategies in a much bigger way than ever before,” says David Wilson, Managing Director, Head of Institutional Solutions Group, Nuveen Asset Management. “As rates rise and funded ratios improve, our team expects a considerable number of LDI programs to accelerate or start. Implementing PFaroe reflects our commitment to using cutting-edge technology to offer truly customized solutions, enabling us to better serve our current clients and putting us in a stronger position to meet the growing demand in this space.”
RiskFirst is a market-leading risk analytics provider in the UK, which, through its partnership with Winklevoss Technologies LLC, is gaining a growing foothold in the US. Its core product, PFaroe, is a real-time, web-based valuation, analytics and reporting platform designed to help institutional investors gain deeper insights into their risk exposure across multi-asset portfolios.
Wilson adds: “As we built our technology platform, we found that there were good analytics systems on the asset side, and good pension liability systems, but there were very few that pulled both sides of the equation together on one platform – something we deemed essential to efficiently design LDI strategies on behalf of clients of all sizes. PFaroe does this, while also offering insight into the key risks that pension plans should be concerned with, all displayed in a user-friendly fashion.”
Matthew Seymour, Managing Director, RiskFirst, comments: “Nuveen has a distinguished history of innovation and dedication to investment in best-in-class technology and we are therefore delighted that they have chosen PFaroe as the tool to help them better service their institutional clients and win new business. This is also another significant step for RiskFirst in the US market, and is further evidence of the market’s demand for holistic web-based risk analytics”.
About Nuveen Asset Management
Nuveen Asset Management offers a broad range of innovative investment strategies, from traditional and specialized equity to taxable and municipal fixed income. With solutions that span multiple asset classes, the firm’s disciplined approach to equity and fixed income investing is driven by integrated research and risk management processes. Nuveen Asset Management offers a collaborative approach to multi-strategy portfolio management that emphasizes quality and ingenuity. Nuveen Asset Management managed approximately $122 billion as of March 31, 2014.
For more information, please visit the Nuveen Investments website