SINGAPORE - Koeneman Capital Management Ltd., Singapore, is using investment technology to rack up strong investment return numbers for institutional investors, and is considered by consultants as a top money manager in the Pacific Basin.
For four years ended Dec. 31, Koeneman, which has $1 billion under management, scored a total return of 12.9%, vs. -5.2% for the Morgan Stanley Capital International Europe Australasia Far East Pacific Basin universe.
Koeneman executives credit their Automated Research Assistant program for helping produce those returns. The program was developed by Geoffrey Wong, director of investment technology and a portfolio manager at Koeneman.
The Automated Research Assistant program looks at 2,000 different economic and financial data series over a 30-year time horizon, and Koeneman executives use the program to help develop equity investment models for 15 different countries.
Countries for which Koeneman has equity investment models include Malaysia, Thailand, Hong Kong, South Korea, Singapore, Indonesia, Japan, Australia, Germany, France, the Netherlands, Switzerland, United Kingdom and the United States.
By having so many different models, Koeneman executives say the models lack a cultural bias or presuppositions about what drives the equity markets in each country.
Koeneman also has access to a supercomputer owned by the government of Singapore. Supercomputers are so expensive they are beyond the means of most money managers, but they are valuable because they shorten the time needed for new computations used in the investment models.
Besides the models, Koeneman has an international stock information system, ISIS, that the firm's executives developed in-house. ISIS uses a wide range of data bases, including those from BARRA Inc., Berkeley, Calif; Institutional Brokers Estimate System, New York; and Extel Financial Ltd., London; to provide daily access to information on 15,000 companies.
ISIS produces reports that rank stocks, based on several variables, including earnings forecasts, relative to other companies in the same market.
However, Koeneman executives point out Koeneman is not a "black-box firm" that leaves it up to their technology to pick stocks. Besides their electronic research, Koeneman portfolio managers do on-site visits with the companies in which they invest.
Koeneman executives also do fundamental economic research on each market. In stock selection, Koeneman executives say they marry their advanced information techniques with human investment skill and judgment.
According to a source, executives with the Royal Dutch Shell pension plan in the Netherlands were impressed enough with Koeneman to select the firm in February for money management.
Mortgage securities added
NEW YORK - Many investors need to analyze their mortgage-backed securities holdings, so Global Advanced Technology Corp., New York, has added mortgage-backed securities to its data base of collateralized mortgage obligations. GAT's CMO data base is in its Precision system, a Windows-based software system used to analyze CMO portfolios. The Precision Mortgage Backed Securities module primarily acts as a data server to the Precision Portfolio module, but it can be used to analyze characteristics of specific mortgage-backed securities pools, such as time series and geographic information.
Thomson acquires Sharewatch
LONDON - Thomson Financial Services Ltd., London, has acquired Sharewatch, a data base of ownership of U.K.-listed securities.
Sharewatch will be integrated into the CDA/Spectrum business unit that specializes in providing institutional securities ownership information products and services. CDA Investment Technologies Inc. is an affiliate of Thomson Financial.
Thomson acquired Sharewatch from ICC Information Group Ltd.
Axys sales at 500
SAN FRANCISCO - Advent Software reports it has sold more than 500 copies of its Axys automated portfolio accounting, reporting and performance measurement software since it introduced the product two months ago.
Axys is Windows-based and starts at $15,790 for a single-user system.
New features for BondEdge
LOS ANGELES - Capital Management Sciences has developed a utility program that allows its clients to retrieve factors for amortizing securities and incorporate them into its BondEdge portfolio analytics systems.
CMS also has released new simulations in its BondEdge software product that assists managers in estimating earnings.
The Book Value Return Simulations permit projection of book values, market values and unrealized gains and losses for any horizon period and interest rate environment.
UNIX-based TradeWise set
ORLANDO, Fla. - TradeWise, a new UNIX-based software program, puts analytical capabilities of an expert system into the hands of investors and traders who don't write computer programs, according to DCL Systems International Ltd., which developed the system.
TradeWise automates decision-making processes according to user-defined rules and specifications. It uses fuzzy-logic and artificial intelligence in its design. TradeWise explains all of its recommendations. For more information, call 212-679-4801.
Princeton Financial expands
PRINCETON, N.J. - Princeton Financial Systems has opened offices in San Francisco and Denver.
Tim Westhoff, regional sales manger, heads the San Francisco office, and Cory Sokoloski, regional sales manager, heads the Denver office.
Brokerage firms testing service
Five major brokerage firms - including PaineWebber and Kidder Peabody - have signed on to evaluate new online service from Multex Systems Inc. that distributes financial research reports to personal computers around the world.
The system allows brokerage firms to disseminate their analysts' research reports to investment managers, institutions, corporations, bankers, private investors and their own retail brokers.