US public sector pension plans are expected to increase their spending on scenario modeling and stress testing in the next two years, says an Ortec Finance study.
US public sector pension plans are expected to increase their spending on scenario modeling and stress testing in the next two years, says an Ortec Finance study.
The study, conducted by PureProfile, interviewed 50 US public sector pension fund managers responsible for a combined $1.315 trillion in assets under management. The survey was conducted in February 2023.
The research found that there is a growing appetite among plan sponsors to invest in tools that can generate and analyze risk-return scenarios.
Currently, 44% outsource their ALM studies entirely to third parties, while 54% partially outsource them.
When assessing their in-house ALM capabilities, 26% rated their teams as excellent, while the remainder described them as good or average.
Interestingly, only 20% of those surveyed consider both assets and liabilities when assessing risk, with 42% solely focusing on liabilities and 38% looking at assets only.
