Cambridge Associates Adopts RiskFirst Analytics

Cambridge Associates signed an agreement to use RiskFirst’s PFaroe risk analytics platform, which allows clients to evaluate specific asset and liability risks within complex investment portfolios.

Cambridge plans to leverage the web-based PFaroe analytics platform on behalf of its more than 100 pension plan clients. As explained by RiskFirst, PFaroe provides testing of multiple economic scenarios to assist plan sponsors and their investment advisers in reviewing complex asset risks and benefit liabilities faced by defined benefit pension plans.  

Sponsors are provided with detailed reporting used to review the probability of particular outcomes for their defined benefit plans. Reporting is available for both assets and liabilities through a strategic partnership between RiskFirst and Winklevoss Technologies, a provider of defined benefit liability analytics.

In July, Rocaton Investment Advisors reached an agreement with RiskFirst in order to bring more advanced pension plan risk management to clients. Nuveen Asset Management also came to an agreement with RiskFirst a short time later.

David Druley, Cambridge’s global head of pensions, says RiskFirst’s PFaroe provides clients a good opportunity to become more familiar with their individualized asset and liability risks.

“Over the past 30 years, our clients have become increasingly more sophisticated in terms of how they are managing the risks inherent in their pension plans,” he explains. “We believe that each client is unique, and therefore, each client requires a customized approach.”