Conning's state-of-the-art GEMS® economic scenario generator enables users to simulate future states of the global economy and financial markets, including the pricing of derivatives and alternative assets. It uses financial models that are the most technologically advanced in the industry, ensuring that models perform consistent with history, provide a realistic representation of extreme events and support hedging strategies with market consistent pricing.
Conning offers a full product suite that leverages the underlying technology of GEMS® software, combined with investment and other rules-based engines, that meet investment risk and other unique risk modeling needs, going beyond a standard ESG.
GEMS® Scenario Master software
A general purpose ESG, GEMS® Scenario Master software provides advanced modeling and estimation technology, and is the baseline product on which GEMS® Portfolio Analyzer and GEMS® Enterprise Modeler software are built. GEMS® Scenario Master software features best-in-class capabilities for modeling interest rates, inflation, corporate credit risk, equity markets, and foreign exchange. Additionally, it provides the ability to model factors such as GDP and unemployment, and includes asset aggregation at the individual security level.
Clients can also use GEMS® Scenario Master software to meet Solvency II requirements, as well as for economic capital modeling, stochastic liability and capital valuation, product design, and market consistent embedded value calculations. Outputs from GEMS® Scenario Master software can be easily imported into existing modeling tools.
GEMS® Portfolio Analyzer software
For users who need to model multiple investment portfolios, GEMS® Portfolio Analyzer software includes all the capabilities in GEMS® Scenario Master software with added functionality to handle applications such as strategic/dynamic asset allocation, variable annuity hedging, pension management strategies, and risk attribution. Portfolio managers can take advantage of the rich set of financial instruments available in GEMS® Portfolio Analyzer software such as floating rate notes, interest rate swaps, interest rate derivatives, inflation-linked derivatives, and equity derivatives for their modeling needs.
Additionally, GEMS® Portfolio Analyzer software enables companies to model different trading strategies and is the only ESG on the market with the ability to model asset aggregation at the portfolio level.
GEMS® Enterprise Modeler software
As an ESG for whole company modeling, GEMS® Enterprise Modeler software is the most comprehensive of the three GEMS® products. It includes all the functionality of GEMS® Portfolio Analyzer software and adds capabilities for asset aggregation at the entity level as well as the ability to do investment and capital management within several accounting/regulatory regimes. GEMS® Enterprise Modeler software can be used for many modeling applications such as multi-entity risk management, financing and accounting-driven decisions, risk diversification strategies, and reverse stress testing.
Flexible Implementation Options
GEMS® can be implemented according to your company’s business needs. It can be licensed as a standalone solution to interface with your existing modeling systems or it can be licensed as an integrated ESG in ADVISE®, Conning’s whole company risk management platform. Regardless of which implementation you choose, GEMS® provides a common economic modeling framework across the enterprise to ensure consistency, so for the first time, all modeling activities can reflect a single, realistic, shared market backdrop.
The GEMS® Technology Difference
The advanced modeling and estimation technology used by all three GEMS® products produces empirically validated, realistic economic behavior to give you a better understanding of the risks in managing your business. The comprehensive set of economic models and financial instruments available in the GEMS® product suite offer superior calibration & validation, which produce more accurate scenarios, with more realistic tails, something other models don’t offer. Other features common across all GEMS® products include:
- Consistent Real World and Risk Neutral scenarios
- Superior technology for modeling equities, interest rates, and inflation
- Ability to build custom correlated market indices
- Realistic relationships between asset class returns
- Ability to model at the security level, which can save capital
- Exceptional validation and calibration
- Multi-currency and multi-economy
- Powerful analytics and reporting
- Asset aggregation capabilities
- Flexibility and user customization
- Transparency and documentation
- ODBC data access
- A Monte Carlo stochastic modeling platform that is fully scalable, from a laptop to a full grid computing environment.
For more information about Conning’s risk modeling systems and strategic advisory services, please contact us .