OPM portfolio technology

Strategic allocation. OPM has since 2003 developed its own analytical tools for strategic portfolio allocation. These tools are based on a combination of established quantitative theory together with fundamentally based forecasts for the rates of return in different asset classes. The tools were initially developed to simulate various portfolio options for our customers so that we could show how an increased percentage of hedge funds would affect their entire allocation. In recent years the tools have mainly been used to assist existing customers in their strategic analysis.

ALM analysis. There are also ALM models developed from the same basic technology. These models take into account both formal requests from authorities and individually defined risk limits. Risk limits are simulated over 40 years with individual confidence intervals.

Risk analysis. OPM has also developed a system for risk analysis and risk monitoring. The system is based on a range of the risk models that OPM uses in the ongoing management and analysis. The most advanced versions retrieve data directly from banks and securities depositories so that a substantial risk of error is eliminated.