Callan Adopts Pension Risk Analytics Solution

Callan Associates will use RiskFirst’s risk analytics platform, PFaroe, to help institutional investors conduct asset allocation and asset/liability studies.

Callan’s capital markets research group will leverage PFaroe, a real-time analytics and reporting platform, to help plan sponsors with their strategic planning, asset allocation and asset/liability studies, aiding the implementation of effective investment strategies and de-risking solutions, such as flight plans. 

More and more clients are implementing de-risking flight plans, raising the importance of analytics to monitor funded status and decide when to execute changes in strategy, notes Jay Kloepfer, executive vice president and director of capital market and alternatives research at Callan. “We view PFaroe as a major step forward in the analytics we can offer, allowing us to perform more frequent and deeper simulation modelling, so that we have a real handle on clients’ risk positions,” he says.

The breadth and depth of the platform’s analytics will allow Callan’s clients to grasp the true enterprise-wide impact of their pension plans, Kloepfer says, adding that PFaroe is nimble enough to capture some of the more interesting aspects of capital market quirks that the firm wants to simulate.

PFaroe will be used in conjunction with Winklevoss Technologies’ (WinTech) liability valuation software, ProVal, which Callan has used since 1995. RiskFirst formed a strategic partnership with WinTech in 2013.

Callan is an investment consulting firm with nearly $2 trillion in total client assets under advisement. More information is at