CalSTRS’s new asset liability management study puts the importance of a well-diversified portfolio to enhance the fund’s long-term sustainability in the spotlight.
As you further expand your alternative investment portfolio with increasing allocation to private equity and private debt, various data and operational risks arise. This gets even more challenging due to multiple siloed and legacy IT systems, and unresponsive third-party servicers that lead to delayed data, data breaks, and inefficient workflows.
These issues strip you of the ability to respond to rapid market changes and make the best investment decisions at the total portfolio level. Having a reliable, real-time view of your strategic and tactical portfolio allocation decisions is nearly impossible.
How can you build upon your near 75% funding ratio with more diversified and resilient portfolios to ensure the fund’s long-term sustainability amid market swings?
To start, you need a total portfolio view across all public and private markets assets that’s accurate, timely, and shared across all relevant stakeholders and downstream systems.
Explore how we can help you with portfolio management and trading and performance and risk management while ensuring you have access to real-time position keeping with IBOR, comprehensive investment operations services, and an open partner ecosystem – all enabling positive outcomes for your investment needs.
The risks of delayed data in public pensions
You need timely and reliable data to evaluate if your investment strategy aligns with the fund’s long-term goals at all times. To understand how public pensions can address these data challenges, we asked our industry expert these three questions:
1. What is keeping public pensions from acquiring timely, accurate data?
2. What are the market trends that will continue to make pension funds heavily reliant on such data?
3. Where should you start in building a total portfolio view for better risk management?
Driving returns from complex assets doesn’t have to be complex
Many pension plans, like yours, are increasing allocations to alternative assets to generate long-term returns. Depending on your level of preparedness, this could bring new opportunities or lead to an operational meltdown—private markets bring a layer of complexity with more overhead and oversight. It’s time to consider your operating model choices.
Imagine achieving the same STP rates for both traditional and alternative instruments. Our alternative investment solution allows you to do that and see alternatives and traditional asset classes all in one place.
How ATP consolidated IT platforms to better manage alternatives
As a major investor in alternative investments, ATP saw great value from consolidating their IT platforms from two systems, down to one.
We now have only one position system with all the consistency and efficiency benefits it provides.
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You have a number of operating model choices to best manage all your asset classes. We’re here to help, just reach out and we’ll be happy to show you options that fit your unique needs.