H E A LT H W E A LT H C A R E E R

PFaroe Up-to-date pension funding and risk analytics, combined with real-time stress-testing at your fingertips

U S E R - F R I E N D LY R I S K A N A LY T I C S A N D R E P O R T I N G F O R D E F I N E D B E N E F I T P L A N S

PFaroe® is an intuitive, sophisticated and integrated suite of tools available for use by defined benefit (DB) pension plans. Built with leading-edge technology and a user-friendly interface, the platform brings together asset and liability data and risk analytics to provide a joined-up solution which underpins the Integrated Risk Management (IRM) framework.

Launched by RiskFirst in 2009, PFaroe is Mercer UK’s preferred platform for risk analytics and reporting. RiskFirst is the UK market leader in the field, with more than 1,800 plans with combined assets of over £550 billion1 currently modelled on their platform.

1 Correct as of 2017.

i

B E N E F I T S O F P F a r o e

Support informed decision-making

Gain a comprehensive understanding of risk PFaroe’s transparent approach to risk management and easy-to-use interface drive understanding of complex issues while still delivering the detail required by sophisticated users.

Test suggestions, advice and scenarios By allowing users to change key assumptions in real time through testing a variety of outcomes and analysing a range of risk metrics, users are able to deepen their understanding of a plan’s risk exposure and make more informed decisions.

Capitalise on opportunities

Identify the right time to act and capture key opportunities Offering access to up-to-date funding, risk and market information alongside automatic notifications when triggers are hit, PFaroe equips users with the right knowledge to react quickly and confidently, executing key risk management exercises when the most favourable conditions arise.

Focus on actions, not number generationPFaroe provides consolidated and consistent plan-specific information in one place for all stakeholders, driving consensus and improving the nature and relevance of discussions — moving the debate to one centred on results and actions rather than on number production.

2

Increase efficiency

Support improved project implementation Through access to more detailed and up-to-date data, plans can improve the structure and implementation of de-risking and other projects, including trigger-based investment strategies, liability-driven investment, liability reduction exercises and buy-ins/buyouts.

Automated reporting PFaroe has the flexibility to meet a broad range of reporting requirements. Users can save time and effort by using the automated report function to produce standard or bespoke reports in PowerPoint and Excel, bringing consistency in reporting to various stakeholders, and freeing up time to focus on strategic imperatives.

Superior governance framework

Monitor and review plan progress regularlyPFaroe’s easy-to-access analytics allow users to frequently monitor and review their plan’s position and funding strategies. Moreover, a central repository ensures that historic valuation and risk data are maintained, which can be accessed on demand, enabling plan sponsors and trustees to build the necessary controls to ensure that governance obligations are met.

Interact more efficiently with advisors and managersAs a central and consistent information platform, PFaroe drives more meaningful and interactive relationships between pension plan trustees, sponsors, actuaries, consultants and investment managers. Through access to the platform, users are able to independently access information, enabling them to work more closely with key internal and external stakeholders.

3

P F a r o e F O R T R U S T E E S A N D S P O N S O R SPFaroe is Mercer UK’s preferred risk analytics and reporting platform, used to support defined benefit consulting and advice services.

Thanks to technology, we are flexible in how we work with our clients. Where appropriate, access to PFaroe is provided to clients, enabling them to access its core monitoring dashboard, or perform their own analysis using its sophisticated capabilities in risk and asset liability management.

The platform can be used collaboratively by consultants and clients to share data and interactively model different assumptions and strategies — accelerating and helping to support improved decision-making.

When you use PFaroe with Mercer as part of a risk management solution, you gain access to the wealth of Mercer research and insight through market views, future yields, investment options and economic scenarios, which have been fully integrated with the technology to ensure seamless delivery of advice and support to clients.

4

A B O U T M E R C E RMercer is a leader in defined benefit risk consultancy, advisory and fiduciary management, assisting trustees, pension managers and sponsors. We provide our clients with a holistic approach to pension risk management that aligns strategy with the plan’s overall funding status and goals.

Mercer Limited is authorised and regulated by the Financial Conduct Authority. Registered in England No. 984275. Registered Office: 1 Tower Place West, Tower Place, London EC3R 5BU.

C O N T A C T U SSpeak to your Mercer consultant or contact us via the web or email.

uk.mercer.com/pfaroe

pension-insights@mercer.com

5

The PFaroe service is currently available for DB plans, subject to availability and status. Terms & Conditions and charges apply.

The PFaroe service is provided by the Risk First Group Limited (incorporated in England and Wales, Companies House registration number 08692541), which is the parent entity of the RiskFirst business. The registered office of all of the RiskFirst UK entities is 77 Kingsway, London WC2B 6SR.

PFaroe is owned, developed and licensed by operating subsidiaries of Risk First Group Limited (incorporated in England and Wales, Companies House registration number 08692541). The registered office of all of the RiskFirst UK entities is 77 Kingsway, London WC2B 6SR.

6 6006009-WE