Moody’s Analytics announced today that Income Research + Management (IR+M) has licensed the PFaroe™ DB, a pension risk modeling software.

IR+M ($96 billion AUM as of December 31, 2021) has a range of fixed income products spanning the US debt market including liability-driven investment (LDI) strategies. The IR+M LDI Team will be using the PFaroe DB software to run advanced risk analytics to develop the most effective LDI strategies for their clients’ pension plans, as well as monitor funding levels of these plans.

The asset manager is also using the technology to support a new business drive in the LDI space. With US pension plans’ funding levels increasing significantly over the past 12 months, clients are de-risking their investment strategies which may lead to higher demand for LDI strategies. PFaroe is well equipped to assist in evaluating customized LDI strategies in the context of a broader asset allocation for a pension plan.

Theresa Roy, SVP, Investment Product Specialist and leads the LDI Team at IR+M said:

“To engage effectively with our institutional investors, we are often required to generate highly complex asset-liability analytics. The PFaroe DB tool supports our technological capabilities and offers our clients a holistic view of how our bespoke LDI solutions meet their unique circumstances and fit into their investment strategies.”

Owais Rana, Head of Business Development for North America Buyside Solutions at Moody's Analytics, added:

“Increasing investor demand means that no asset manager can afford to be weighed down with technology challenges. Our engagement with IR+M reinforces our leading position as a specialist pensions technology firm that pension plans’ advisors can rely on to alleviate IT headaches so they can focus on solving investment problems for their clients.”