USS has adopted Ortec Finance’s Asset-Liability Management (ALM) solution

Universities Superannuation Scheme (USS), has adopted Ortec Finance’s Asset-Liability Management (ALM) solution, which will be fully integrated into USS’s investment process.

The appointment strengthens Ortec’s relationship with USS, having been appointed in 2014 to provide performance measurement, attribution and ex-post risk reporting across the fund via Ortec’s Investment Performance Service (IPS).

Lucas Vermeulen, Managing Director at Ortec Finance, commented:

“Ortec’s ALM solution enables companies to gain valuable insight into the key strategic benefits of investment strategies, manage and understand risk and return trade-offs, and enhance decision making. Our solution specifically helps to manage and improve sophisticated trigger-based investment strategies, taking account of assets, liabilities and sponsor contributions.

“Combining our existing IPS work with our ALM solution means we can work with USS to help adopt a consistent framework for ex-ante risk and ex-post performance analysis. We therefore look forward to working with the scheme to ensure specific goals and objectives continue to be met in both their short and long term strategies.”

Guy Coughlan, Chief Risk Officer at USS, said:

"Having worked closely with Ortec over the past two years on improving our investment performance analytics, we are pleased to be in a position to partner with them once again to enhance the strategic management of the scheme’s assets and liabilities. Understanding the risks our scheme faces, as well as the impact of different economic scenarios and investment strategies, is crucial for effective risk management and the delivery of the best possible outcomes for members and sponsors.

“Ortec’s ALM solution is unique in meeting our needs in terms of blending sophisticated long-term risk modelling with the flexibility to incorporate dynamic investment and risk management strategies.”