Notes and instuctions
Please note calculations are approximate and give a guide only. Button in the top right hand corner allows users to provide some basic liability information (duration and discount rate). Strategies can be adjusted by changing numbers in the boxes or by dragging labelled bars in the allocation chart. Novum Equivalent strategy is a fixed strategy created by replacing Waterfall assets with Gilts and Equity Options (Shaped Equity) Assumption is that Shaped Equity is designed to have the same risk profile as Waterfall assets. Novum DIY allows users to create their own allocations. The reset button will reset the DIY allocations to the Novum Equivalent strategy. Buffer chart shows the interest rate rise to exhaust the collateral pool for different shocks to the Waterfall/Shaped Equity allocations. Please note that the Traditional allocation results do not take into account any selling of waterfall assets. Heat maps show the rise in interest rates to exhaust collateral AFTER the chosen scenario (which is a combination of a rise in interest rates and shock to waterfall/shaped equity assets).