Pension plans are liability managers, not simply asset management agents.  They must manage assets in the face of uncertain investment outcomes that are rooted in economic outcomes and macro-economic policy choice.

Most economic analysis is centred on trying to ease the challenge of making decision under uncertainty, attempting but mostly failing to identify cyclical and market peaks and troughs.  This not what we offer.

SSC provides key economic and investment input assumptions centred on scenario generation and analysis.

SSC’s systematic approach to scenario generation identifies potential economic environments and macro policy settings that define the most likely growth and inflation outcomes over your planning horizon.

Based on past empirical analysis and the established relationship between economics and investment outcomes, expected return profiles are generated that form the input to the A-L modelling process and the generation of an investment plan.

Scenario based analysis generates a range of possible outcomes that informs the asset allocation and investment planning process.  It identifies potential contingencies that any investment team must plan for.

Scenario analysis provides a coherent and rigorous basis on which to help the investment committee of your board navigate the main issues and risks of your asset allocation choice.

As part of this service SSC offers the following analytical content:

1. Generation of detailed economic scenarios with underlying logic and historical equivalents.
2. Generation of Detailed economic and financial inputs to the A-L analysis.
3. Generation of asset return paths over your defined planning horizon
4. Generation of expected return forecasts by asset class over a ten-year horizon
5. Provision of easy-to-understand narratives for your board package

Our founder Andrew Spence is available to:

1. Create content for your board presentation including presentations and dedicated reports.
2. Present the analysis and its recommendations to your board.
3. Work with your board as advisor on economic analysis and expected return formulation to better understand the output of A-L simulations and investment planning.