BNY Mellon’s Global Risk Solutions (GRS) business is introducing an enhanced Asset Liability Report to help pension fund managers more effectively monitor their plan’s funded status and other essential asset and liability measures.
Through the use of informative graphics, and driven in part by recent industry changes and regulatory concerns, the new monthly service allows U.S. defined benefit pension fund clients to:
- View a snapshot of their plan’s summary statistics that compares assets, liabilities and funded status ratios
- Analyze the different factors that cause their plan’s funded status to fluctuate
- Choose from various yield curves when discounting liabilities
- Monitor asset alignment relative to liability characteristics such as duration and future cash flows
- Evaluate the sensitivity of their plan’s funded status to changes in capital markets
“Client feedback strongly influenced our decision to offer this service,” said Frances Barney, CFA, head of Consulting-Americas for Global Risk Solutions at BNY Mellon. “More and more, we’ve seen fiduciaries implementing liability-driven strategies and adopting de-risking glide paths. Also, actuarial valuations, which are created annually and often distributed months in arrears, have lessened in value to many clients. These and other developments require plan sponsors to conduct more frequent monitoring of assets and liabilities.
The Asset Liability Report is populated from various data sources, including BNY Mellon performance, analytics and accounting data, external vendors, as well as client-supplied information. The report also leverages the intellectual capital of BNY Mellon Investment Management’s Fiduciary Solutions group.
"This report is a great example of us harnessing knowledge and insight from across BNY Mellon to meet our clients’ needs,” Barney added.
“We’ve worked very closely with defined benefit plans to continuously refine our reporting for effective pension plan management,” said Michael Rausch, head of Investment Strategy, Fiduciary Solutions. “We’re pleased to partner with our GRS colleagues to bring this capability to other BNY Mellon clients.”
Reporting $12.3 trillion in assets under measurement, BNY Mellon’s Global Risk Solutions group is one of the world’s largest providers of sophisticated investment analysis tools to more than 1,000 institutional investors in 33 countries. Its professional staff consists of more than 500 employees operating from 15 cities worldwide. By providing risk analysis and performance measurement services on clients’ investment strategies, GRS helps them manage their investment process and risk exposure.