P-Solve opened the Boston office in 2007 to provide investment advisory and risk management services to US institutional investors. The office works closely with the London-based team to provide solutions for a variety of clients including corporate and public pension plans, insurance entities and corporate treasuries. The P-Solve Boston business is currently focused in two areas: liability-focused investment advice and management and derivatives advice and management.
Investment Advice and Management
For clients with defined liabilities, P-Solve Boston provides both outsourced and advice-only investment services on a "Liabilities Plus" basis. Designing the strategy around the client's actual liabilities allows us to better define success or failure of the investment process and to be evaluated accordingly. Our investment strategies are provided on a fiduciary basis under our Registered Investment Advisor status.
The basic building blocks of this Liabilities Plus investment service are a highly-diversified investment portfolio, a liability-matching portfolio and, often, a risk management overlay portfolio to fine-tune the risk/reward position of the portfolio.
For pension clients, implementing a Liabilities Plus portfolio with explicit management of financial risks can result in a dramatic decrease in funding risk. For a typical pension plan invested 65% in equities and 35% in fixed income, moving to a P-Solve designed portfolio could cut risk by over 50% without impacting the expected return on assets due to the benefits of asset diversification and the management of "unrewarded" risks such as falling interest rates.
Derivatives Advice and Management
P-Solve Boston works very closely with P-Solve Risk Management Solutions to provide independent derivatives advisory and execution services for clients. Typically, the entities who advise on and structure derivatives transactions for clients are the same ones who make money from trading them: the investment banks. A bank does not have a fiduciary relationship with a client and, all too often, a client ends up with a structure that maximizes profits for the bank rather than provides the client with what he or she truly wants or needs. P-Solve works to understand the client's objective, provides a cost effective structure and can execute that structure in the market at the best possible price. P-Solve also provides services to help negotiate derivatives documentation, establish collateral management and provide independent valuation of derivatives positions.
P-Solve Boston is a division of Punter Southall LLC, the US branch of the Punter Southall Group. P-Solve Boston works closely with the actuarial and investment professionals of Punter Southall LLC.
Please click here for Boston address and contact details.
