LONDON -- State Street Corp. launched a package of portfolio management tools enabling money managers to measure liquidity, contagion risk and portfolio flows across 46 countries.
The analysis is based on measuring investment flows within the $5.3 trillion in assets the bank holds in custody and gives money managers a daily view of whether investors are generally long or short in various markets relative to different indexes.
Investors' responses to macroeconomic data and events tend to depend more on whether they are long or short in a particular market rather than on whether the data are worse or better than expected, said Avinash Persaud, head of global research for State Street's financial markets group.
This analysis of current and historical portfolio flows also enables money managers to measure market liquidity and contagion risk, both of which can substantially affect overall risk within a portfolio.
The analysis covers equities, fixed income, currencies, forwards and options, but not commodities.
3 pension funds to get new systems
FARMINGTON HILLS, Mich. -- Complete Business Solutions Inc. is developing pension administration systems for the Oregon Public Employees Retirement System, Salem, and Indiana State Teachers' Retirement Fund and Indiana Public Employees' Retirement Fund, both in Indianapolis.
For all three funds, CBSI will work to improve workflow, imaging and office automation capabilities to better the speed and accuracy of business processing.
The new system at Oregon will replace an existing mainframe system with a client/server function. Ultimately, members will able to transact related business over the Internet.
Yale picks PAM for accounting
NEW HAVEN, Conn. -- Yale University has licensed PAM and will use PAM Connect for portfolio accounting for its $6.5 billion in endowment and pension assets.
The staff should be done implementing the new system in a few months. The software replaces a legacy system that was developed in-house, said Alex Banker, director of investments.
Yale officials will be using PAM Connect, an offsite client service bureau, as an outside data center.
Real-time calculator of transaction costs out
NEW YORK -- Investment Technology Group has created a Web-based research tool for calculating transaction costs in real time.
Transaction Cost Analysis allows traders to factor in trade and liquidity difficulties, while evaluating trading performance against open, closing and intraday prices and the value-weighted average price. Traders and portfolio managers can see what a trade's cost should be relative to the actual expense and make any corrections necessary to improve performance.
TCA will be available to clients in the fourth quarter.
Separately, the firm has released ITOptimizer, a portfolio optimization system that can analyze a portfolio by asset class or by an individual security. ITOptimizer also will be used as the main technology behind Expert Portfolio Advisor, Investment Technologies' online investment advice service.