Investment Forecasting and Simulations

Why Investment Forecasting and Simulations?


Markets are changing fast, and it’s critical to manage the volatility of portfolios and the balance sheet. Therefore, it is important to be able to simulate the impact of different scenarios on your investments, liquidity, balance sheet and capital requirements. The ability to calculate different future paths of events will help you proactively evaluate necessary adjustments to your target asset allocation.


Assess the future impact of the overall strategy

  • Run unique and automated “what if” scenarios of market data and position changes
  • Forecast across all asset classes, including Alternative Investments
  • Forecast assets and cash for different periods (e.g. monthly, yearly, output for 99 years)
  • Rebalance current portfolio against a future Target Asset Allocation
  • Consider different reinvestment rules, supporting passive and active reinvestment strategies
  • Fullfill your current and future capital requirements according to Solvency II/ORSA

Evaluate the future impact of the chosen strategy on your balance sheet and income statement

  • Automate simulation of financial postings for forecasted scenarios
  • Gain consistency in accounting forecasting by leveraging strong ABOR capabilities
  • Forecast multiple GAAPs in parallel
  • Forecast portfolio yield on single security level, as well as on aggregated level

One consolidated view on the truth within your organization

  • Get a comprehensive view of assets and liabilities with easy import of liability cash flows
  • Adapt to your own forecasting expectations with fast import of external data, such as individually forecasted dividends
  • Extract transparent calculation data for stakeholder reports

Cash, Investment and Investment Forecasting


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Who will benefit from Investment Forecasting?


CFO

  • Better support for managing expensive capital requirements, such as SCR Market Risk figures as required by Solvency II 
  • Monitor and analyze long-term liquidity for both assets and liabilities
  • Access impact of your chosen strategy on income statement and balance sheet

CIO

  • Be better prepared by applying unique “what if” scenarios and future target asset allocations for your forecasting
  • Make better investment decisions by analyzing how your current strategy performs in a passive or active scenario
  • Forecast how your current and future strategy can deliver on the returns to meet the requirements from the investors or the liability department of the insurance or pension plan

COO

  • Improve operational efficiency by cutting down on your use of complex spreadsheets
  • Decrease manual efforts and key person risk
  • Get a visual representation of your data with dashboards and transparent drill-downs

CRO

  • Be prepared for the future by monitoring different “what if” scenarios more frequently
  • Provide transparent risk reporting
  • Spend more time on the analysis of the forecasting results, than on the production process
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We can help you with investment forecasting.

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