NEW YORK -- State Street Corp.'s Askari risk management division is the first of several competitors to unveil its next generation of risk management tools, including one for investment managers and pension funds.
The new software -- RiskBook X -- has new XML (extensible mockup language) technology that allows the user to do more complex configurations of data and add more variables than the previous version of RiskBook.
RiskBook for Investment Managers goes further. It contains a performance attribution system that can take performance data an investment manager or pension fund already might have in its system and combine it with new data, and uses a combination of both market risk and credit risk to come up with risk management reports.
"I don't think any (other) current product provides the integration of market risk and credit risk along with performance measurement and client delivery services," said Peter Davies, chief executive officer of New York-based Askari.
Dealing with credit risk is increasingly important for many pension funds that are going into higher risk investments such as high-yield bonds, Mr. Davies said.
"If we want to help investment managers understand the total return equation, credit risk and market risk must be integrated," he said.
Mr. Davies said Askari takes the newest technology and uses its own applications to create new products. One important element of Askari's work is "how quickly we can take things that are leading-edge technology and turn them into useful applications for tomorrow," he said.
GlobalView outsourcing services is also part of the new software. Through this the client has Internet browser access to provided reports, a local results database and reporting and a local RiskBook suite through which the client can integrate other data into the system.
RiskBook X will be available in the fourth quarter. RiskBook for Investment Managers is expected to be available within nine months.