Northern Trust has enhanced its investment statement reporting capabilities to help its Dutch pension fund clients meet the new regulations set out by the Dutch National Bank.
Under the Financieel ToetsingsKader (FTK) regulation, Dutch pension funds are required to demonstrate a transparent approach to managing their assets and liabilities, in line with their investment decisions, in order to gauge sensitivity to market shocks and the impact this will have on pension scheme members.
Northern Trust’s enhanced capabilities, designed in consultation with clients and in line with the Dutch National Bank guidelines, offers valuation data, cash-flow modelling and shock testing analysis to help pension funds demonstrate appropriate investment scrutiny, data integrity, and risk modelling as their investment process evolves.
“For many Dutch pension schemes focusing increasingly on liability driven investments and alternatives, these new requirements present a number of challenges,” says Frans Hofkens, Institutional Investor Group, Northern Trust in The Netherlands. “By using a consistent suite of cash flow modelling assumptions and performance calculations, Northern Trust can deliver timely data and reporting to our clients, helping them meet their regulatory requirements.”
Northern Trust’s tailored solution for Dutch clients includes quarterly and annual statements, as required under the FTK regulation, as well as cash flows and prescribed shock tests at the asset level to provide exposure reporting. This can be broken down by: asset class and risk currency versus strategic benchmarks; looking through pooled investments to underlying assets; effective exposure on all derivative types and performance and contribution reporting for each asset class.
Northern Trust Enhances Reporting Capabilities in Dutch Market
Northern Trust has enhanced its investment statement reporting capabilities to help its Dutch pension fund clients meet the new regulations set out by the Dutch National Bank.