Moody’s Analytics announced today that State Street Global Advisors (SSGA) will enhance its services to institutional not-for-profit clients with PFaroe E&F, the market-leading solution for investment risk and simulation analytics designed for endowment and foundation portfolios. With total assets under management (AUM) of $3.5 trillion as of December 31, 2022, SSGA, is one of the top asset management firms globally and the newly signed deal solidifies the ability for Moody’s Analytics tools to help SSGA analyze a broad range of asset classes with a variety of client portfolio requirements.
PFaroe is one of Moody’s Analytics’ powerful risk management solutions leveraged by over 3,500 institutional asset pools. The tool expands SSGA’s risk management capabilities and offers a comprehensive analysis of the growing variety of portfolio risks and monitors their potential impact on investments in real-time.
“With heightened geopolitical risk and economic uncertainty remaining top of mind for investors, there is a greater need to better understand a variety of risks within portfolios. We chose Moody’s Analytics’ PFaroe E&F to help our endowment and foundation clients meet their mission by effectively managing risk exposures against return expectations,” stated Thomas Kennelly, Head of OCIO Investment Strategy for SSGA.
“From increases in the donor pool to inflationary shocks, the tool allows us as managers to alter factors which can have an impact on the ability to meet future spending requirements and will provide tremendous benefit to our clients,” continued Kennelly.
“PFaroe E&F can perform powerful forecasting of portfolio value and spending projections which can be underpinned by economic scenario modeling to help managers better assess uncertainty in asset allocation decisions,” added Matthew Seymour, Head of Buy-Side Solutions at Moody’s Analytics.
With this adoption, SSGA now offers the complementary risk tools of PFaroe DB solutions to their defined benefit pension scheme clients and PFaroe E&F to their endowment and foundation clients. State Street Global Advisors is part of a growing list of global asset managers with a diversified offering across every asset class, investment approach, and style utilizing Moody’s PFaroe E&F tool.