The client needed to set up a new ALM system dedicated to Defined Benefit pension plans, as their existing system did not address the complexity of pension cash flows.

Solytics developed a bespoke ALM system in four phases:

1. Documentation: Documenting required functionalities and vetting with subject matter experts including Actuaries, Asset Managers, and ALM Quants.

2. Market Scenario Simulation: Creating a powerful simulation engine to generate market scenarios for interest rates, total return indices, and liability cash flows.

3. Portfolio Projections: Setting up projections for assets and liabilities based on market scenarios and simulations of different asset classes, mark to market liabilities, fees/expenses, ERISA and other contributions.

4. Optimization and Risk Reporting: Performing risk-reward analytics on different risk metrics.

- Provided a dedicated ALM platform for Defined Benefit plans.

- Enabled the client to perform robust analysis for current clients and acquire new potential clients.