For endowments and foundations, that means understanding the impact of investment strategy on spending objectives. PFaroe allows the manager to optimize investment strategy and performance through defining a risk framework in terms of the organization’s spending objectives or implementation risk from the policy portfolio. Gifting patterns and capital campaigns can be incorporated, allowing the consultant to explore the correlation impacts across the organization holistically, as well as provide more informed advice on budgeting and mission delivery.

Within PFaroe, asset analytics can be generated using benchmark assets, an investment consultant’s recommended manager suite or assets modeled at a security level (for risk overlay strategies, for instance). Alternatives are included for a holistic view of the portfolio. Multiple types of spending formulae are built in, which, together with the asset inputs, automatically produce a comprehensive suite of spending liability, asset and risk analytics, allowing investment consultants to interrogate and test investment and spending solutions from multiple perspectives. The dialogue with the client is enhanced.

In formulating investment hypotheses, implementation of the consultant’s proprietary capital markets projections enhance the overall value proposition. Results are consistent across all institutional types and sizes.