The key lies in your data. The challenge today is that many public pensions do not have timely access to information on their investments. But as the recent banking failures show, you do need to know where your fund’s exposures are at all times.
The impact of delayed data alone can be significant in a volatile market. This leads to increased risk exposure without the agility to react to changes and ultimately suboptimal investment decisions. Importantly, the lack of transparency—the inability to report accurate financial information to regulators and the public—can erode trust in the pension system.
There’s no need to put up with delayed data. You can have one system that consolidates all asset types in one place to give a holistic overview of your fund’s positions, exposures, and performance—a true total portfolio view.
Three questions for an expert
With big market swings and uncertainty ahead, you need timely and reliable data to evaluate and determine whether your investment strategy aligns with the fund’s long-term goals.
We asked Alan Copping, our senior market strategist, three questions to help public pensions challenge the status quo and address the current data challenges to gain full control of their risks.
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 to start to build a total portfolio view for better risk management?
Alternative investments are an integral part of pension plans’ mission to generate long-term returns. They provide the much-needed diversification to mitigate risk and protect against volatility. But they also bring a layer of complexity with more overhead and oversight. You can reduce business process tangle and operational risk by using a lean system landscape that includes both public and private investments in one platform.
Explore how we can help you with portfolio management & trading and performance & 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.
Given our fiduciary responsibility to our members, we have always sought to ensure that our operations are conducted to maximize efficiency and effectiveness. SimCorp Dimension enables us to do just that. Since going live, we’ve been able to automate many of the investment processes with increased STP rates. This has freed up many of our team members from performing a range of manual tasks.
Assistant CFO and Head of Investment Accounting, The Retirement Systems of Alabama (RSA)
Does your organization have a global view of your positions and regulatory compliance?
Today, firms must function as unified organizations with a single view of operations and be able to react to market changes quickly. The key to realizing this is real time cash and positions data.
Improve investment decision-making with real-time positions data
With an Investment Book of Record (IBOR) you can access accurate, real-time data that is updated continuously for market and investment events. This will allow you to make more informed investment decisions and reduce the time you spend on managing imperfect data. More time managing your portfolio. Less time managing your data. The best of both worlds.
Increased regulatory demands make it more important than ever to know your exposure throughout the day
Transparency is crucial, but traditional systems fail to deliver positions in a timely manner and rarely include adjustments resulting from corporate actions and cash flows. This can lead to unnecessary risks, imprecise forecasts and makes it impossible to make immediate interventions when needed.
A holistic view of your investment operations
With SimCorp's Investment Operations and Accounting services you get a single, near real-time consolidated, matched, settled, reconciled and complete book of record across all market sources and asset classes. This takes the pain out of operations and investment accounting, giving you back valuable time to focus on what really matters to your organization – insight and analytics.
Jim Keohane, former President and CEO of the Healthcare of Ontario Pension Plan (HOOPP), makes the case for an advanced investment management solution to drive derivatives processing and power the liability-driven investment model of the leading Canadian pension fund.
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