Willis Towers Watson’s Insurance Investment Team has announced the launch of its latest version of strategic asset allocation software, Optimum SAA. The cloud-based platform helps insurers and wealth management companies find their optimal asset allocation weightings to achieve better risk management and investment return.
According to Willis Towers Watson, many organisations struggle to find an appropriate strategic asset allocation system. Common issues include unstable optimisation techniques that are not fit for purpose; bespoke IT systems that are expensive, inflexible and don’t meet regulatory requirements; poor assumptions from calibrations that lack robustness; and poor interpretability of model outputs due to improper KPIs.
Designed to enable Chief Investment Officers, Chief Financial Officers and Risk Managers overcome these challenges, Optimum SAA uses superior modelling and stable optimisation techniques to help companies better understand their current asset allocation position and to determine the optimised asset allocation within set constraints.
Ash Belur, Director at Willis Towers Watson, said: “Investment professionals want to develop robust strategic asset allocations to meet their specific needs and to optimise investment returns and manage risks. Optimum SAA cuts through the complexity of strategic asset allocation to produce optimised and practical investment portfolios that reflect a company’s constraints, objectives and risk appetite.”
Drawing on over 30 years of assumptions committee experience and robust processes for producing asset return assumptions, Willis Towers Watson Optimum SAA provides trusted calibrations for a broad range of asset classes, with flexibility to reflect specific investment views held by an insurer or wealth management company.
- Market-leading stochastic modelling – Optimum SAA produces a full results distribution for each allocation, including susceptibility to tail events.
- Reduced risk of unstable optimisation – Willis Towers Watson uses cloud optimisation to generate a cloud of portfolios, which reduces the risk of unstable optimisation results.
- Software developed by investment specialists specifically for insurers and wealth managers – Optimum SAA has the ability to model essential wealth management measures related to decumulation and sustainability and can also report on Solvency II Standard Formula SCR and liquidity metrics.
- Intuitive client interface – The outputs are easy to understand, visually appealing, and metrics and reporting are tailored to a user’s specific needs.
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