BNP Paribas Securities Services says it has launched what it calls an Asset and Liability Investment Analytics (ALIA) solution to support liability-driven investment strategies.
Dietmar Roessler, Head of the asset owner client segment at BNP Paribas Securities Services puts the product in its context: “The emergence of liability-based strategies is probably one of the most significant developments in pension funds investment in recent years. Understanding investment risk and exposure to asset and liability mismatches is crucial for pension funds. With our new range of analytics, our clients can not only monitor their assets and liabilities after the fact, but can also manage their asset allocation across asset classes including credit, property, equity and currency.”
The bank says ALIA supports investors throughout the investment process including: objective setting – users can analyse risk under various economic scenarios; portfolio construction – users can optimise asset portfolios in light of liability projections; implementation – users can carry out analysis of sensitivities in light of liquidity needs; monitoring – users can monitor risk under their investment strategies and provide feedback to the trustees.