Transamerica adopts RiskFirst’s PFaroe to help clients manage DB pension risk
The retirement plan solution provider will use RiskFirst’s risk analytics platform to monitor and report on plan sponsor clients’ risk and funding positions in real-time.
Transamerica Retirement Solutions (Transamerica), a leading provider of customized retirement plan solutions, has adopted RiskFirst’s real-time analytics and reporting platform, PFaroe*. Transamerica will use PFaroe, in co-ordination with its investment adviser partners, to help defined benefit (DB) pension plan sponsors better manage risk within their plans.
PFaroe’s analytics will allow Transamerica to monitor and review plans’ funding positions on a daily basis. PFaroe also allows granular risk analysis – including Value-at-Risk (VaR) interrogation, “What if?” analysis, and stress-testing against historic market events – allowing a better understanding of risk exposure, and more effective implementation of investment strategies. This ability to monitor and react quickly to changes in plans’ funded statuses is especially pertinent for Transamerica given the large number of sponsor clients seeking to de-risk their programs through dynamic asset allocation or glide path strategies.
Furthermore, PFaroe allows Transamerica to offer such accurate, daily valuations – backed up by their extensive actuarial expertise – at a much more affordable price than previously possible, which the company sees providing a number of new business opportunities.
Matthew Seymour, Managing Director, RiskFirst added:
“In the past, such a service would only have been available from the highest-end investment advisory firms at a significant cost – so PFaroe is proving a game-changer for the industry in that respect. We are delighted to welcome Transamerica on-board as we continue to broaden the use of PFaroe in the US market. Their usage of PFaroe highlights its suitability for plans of all sizes and the benefits of having multiple parties involved with a single plan working from the same platform.”
*Transamerica Retirement Solutions is not affiliated with RiskFirst