New risk and analytics tools from State Street
23 August 2010 Boston
Image: Shutterstock
State Street Corporation has announced enhancements to its risk analytics and servicing tools for institutional investors. The new offerings include portfolio reallocation tools, economic stress tests, and expanded investment coverage. These new capabilities as well as the full suite of risk services are now fully integrated into the State Street Investment Analytics Dashboard. Clients can now access a more comprehensive view of their investments across risk, performance, alternatives and compliance.
In today's volatile market environment, institutional investors and investment managers are increasingly seeking ways to better understand their portfolio dynamics and sources of risk. The reallocation tools assist clients with risk budgeting, and economic stress tests complement State Street's existing historical and predictive risk analytics capabilities. Product coverage has also been expanded across all asset classes including comprehensive support for fixed income products.
"This step forward is significant in implementing our investment analytics, internal data warehouse, dashboard and information delivery strategy. These new capabilities provide clients with market-leading risk management solutions that support their analytics, portfolio construction, risk management and hedging functions, helping them build greater confidence in their investment process," said William Pryor, senior vice president and head of State Street Investment Analytics. "Since late 2008 when we began introducing our new dashboard capabilities, we have brought the benefits of industry leading analysis to approximately 200 client organisations and more than 1,000 users around the world. These new enhancements represent the next phase of our strategy to continually provide and increase the depth and breadth of our risk and return services."
State Street's Risk Services include multiple Value at Risk (VaR) calculation methodologies, absolute and relative risk measures, portfolio characteristics, advanced stress-testing and "what-if" capabilities. In addition, position-based risk services deliver a full revaluation methodology with daily (T+1) or monthly reporting and analytics along with data collection, cleansing and augmentation services. Return-based risk measures, inventory management and portfolio construction tools are also available.
"Throughout our relationship, State Street has worked with us to develop tools to help us better understand the dynamics within our portfolios." said Uzi Yoeli, senior director, Portfolio Risk Management, at the University of Texas Investment Management Company. "It has helped us build portfolio stress-tests that enable us to measure the impact of worst-case market scenarios on our hedging effectiveness as well as risk decomposition tools to support our risk budgeting process."
State Street has also added new performance and compliance functionality to the Investment Analytics Dashboard for easy access to more graphical and comprehensive information. Performance heat maps provide colour-coded, visual representations of the size and relative or absolute performance of a client's portfolios with instantaneous 'drill down' and 'drill across' functionality at all levels of the asset classification hierarchy - including by plan, composite, portfolio, asset class, sector, country, industry or security. The new compliance features enhance online fail management workflows by including new alert charting capabilities and the ability to view all compliance results, not just exceptions, over flexible timeframes for quick access to all information.
In today's volatile market environment, institutional investors and investment managers are increasingly seeking ways to better understand their portfolio dynamics and sources of risk. The reallocation tools assist clients with risk budgeting, and economic stress tests complement State Street's existing historical and predictive risk analytics capabilities. Product coverage has also been expanded across all asset classes including comprehensive support for fixed income products.
"This step forward is significant in implementing our investment analytics, internal data warehouse, dashboard and information delivery strategy. These new capabilities provide clients with market-leading risk management solutions that support their analytics, portfolio construction, risk management and hedging functions, helping them build greater confidence in their investment process," said William Pryor, senior vice president and head of State Street Investment Analytics. "Since late 2008 when we began introducing our new dashboard capabilities, we have brought the benefits of industry leading analysis to approximately 200 client organisations and more than 1,000 users around the world. These new enhancements represent the next phase of our strategy to continually provide and increase the depth and breadth of our risk and return services."
State Street's Risk Services include multiple Value at Risk (VaR) calculation methodologies, absolute and relative risk measures, portfolio characteristics, advanced stress-testing and "what-if" capabilities. In addition, position-based risk services deliver a full revaluation methodology with daily (T+1) or monthly reporting and analytics along with data collection, cleansing and augmentation services. Return-based risk measures, inventory management and portfolio construction tools are also available.
"Throughout our relationship, State Street has worked with us to develop tools to help us better understand the dynamics within our portfolios." said Uzi Yoeli, senior director, Portfolio Risk Management, at the University of Texas Investment Management Company. "It has helped us build portfolio stress-tests that enable us to measure the impact of worst-case market scenarios on our hedging effectiveness as well as risk decomposition tools to support our risk budgeting process."
State Street has also added new performance and compliance functionality to the Investment Analytics Dashboard for easy access to more graphical and comprehensive information. Performance heat maps provide colour-coded, visual representations of the size and relative or absolute performance of a client's portfolios with instantaneous 'drill down' and 'drill across' functionality at all levels of the asset classification hierarchy - including by plan, composite, portfolio, asset class, sector, country, industry or security. The new compliance features enhance online fail management workflows by including new alert charting capabilities and the ability to view all compliance results, not just exceptions, over flexible timeframes for quick access to all information.
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