Products July 22, 2014

Nuveen Adopts RiskFirst Technology to Enhance LDI Services

Nuveen Asset Management will use RiskFirst’s web-based analytics platform, PFaroe, to help craft customized liability-driven investment (LDI) strategies for institutional clients and corporate pension plans.
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Nuveen anticipates as much as $1 trillion will transfer from equities to long-duration bonds over the next five years as pension plans and individual investors alike look to implement the principles of LDI, which involves better matching assets to projected liabilities (see “Client Demand Drives Consultant Focus on LDI”). Nuveen says the PFaroe product will be used by the firm’s recently formed Institutional Solutions Group as it builds and delivers LDI strategies for pension plans, public funds, foundations and endowments, insurance companies and other institutional investors.

“Over the next five years, we expect a $1 trillion move from equities to long-duration bonds, as corporate pension plans implement LDI strategies in a much bigger way than ever before,” says David Wilson, managing director and head of the Institutional Solutions Group at Nuveen Asset Management. “As rates rise and funded ratios improve, our team expects a considerable number of LDI programs to accelerate or start.”

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The UK-based RiskFirst company, formerly known as PensionFirst, provides risk analytics software for various applications in multi-asset portfolio management and compliance settings (see “PensionFirst Broadens Focus to Become RiskFirst”). The firm says it is leveraging its strategic relationship with Winklevoss Technologies LLC, to expand operations in the United States. Its core product, PFaroe, is a real-time, web-based valuation, analytics and reporting platform designed to help institutional investors gain deeper insights into their risk exposure across multi-asset portfolios.

“As we built our technology platform, we found that there were good analytics systems on the asset side, and good pension liability systems, but there were very few that pulled both sides of the equation together on one platform,” Wilson adds. “[It’s] something we deemed essential to efficiently design LDI strategies on behalf of clients of all sizes. PFaroe does this, while also offering insight into the key risks that pension plans should be concerned with, all displayed in a user-friendly fashion.”

More information is available at the Nuveen Investments website and at www.riskfirst.com.

Products July 22, 2014

AIG Advisor Group Implements AXIS Analytics Platform

AIG Advisor Group established a partnership agreement with Castle Rock Innovations Inc. to implement the AXIS Retirement Analytics Platform (AXIS), an integrated benchmarking and disclosure system.
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Castle Rock’s AXIS platform supports account identification, data aggregation, automated disclosure and benchmarking through one web-based solution for financial advisers (see “Analytics Platform Ready for 408(b)(2)”). Through AXIS, AIG Advisor Group hopes to improve its efficiency in complying with 408(b)(2) fee disclosure regulations across its four affiliated broker/dealers—including FSC Securities Corporation, Royal Alliance Associates, SagePoint Financial and Woodbury Financial Services.

The AXIS data aggregation engine will enable these AIG firms to unify all retirement plan-related data on a single reporting platform, while the benchmarking module enables AIG advisers to compare plans across a large universe of providers and peers. With the implementation of the AXIS platform, plan sponsor clients will also experience improved efficiencies with their ongoing daily tasks of monitoring and reporting on plan fees, according to the firms.

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Allison Couch, national sales manager for AIG Advisor Group, says the AXIS platform enables her firm to “automate what had been a labor intensive process so that our advisers can focus on their core business of managing client relationships. In addition, we can now provide web-based benchmarking reports that will help our advisers determine how to best compete on services and fees.”

Matthew Schlueter, chief administrative officer for AIG Advisor Group, says Castle Rock was chosen because the firm has previously established relationships with key recordkeepers, allowing AIG advisers to report on 98% of client plans upon the implementation of AXIS.

“The platform implementation has been smooth and on time, giving us a foundation to support our existing retirement plan business, grow new retirement plan relationships and ensure our advisers maintain compliance with 408(b)(2),” Schlueter adds.

Khash Sarrafi, CEO of Castle Rock Innovations, says “AIG Advisor Group is a good example of why we developed AXIS. They wanted to improve their compliance efficiency, but at the same time wanted to guarantee the unique identities of their affiliated broker/dealers. Our platform was developed in a way to provide customization if needed. As such, we were able to tailor AXIS exactly how they required it and we are mutually happy with the result.”

More information is available at www.advisorgroup.com and www.axisretirement.com.

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