State Street Corp. made enhancements to its risk analytics and servicing tools for institutional buyers.
The new offerings include portfolio reallocation tools, economic stress tests, as well as expanded investment coverage, according to a release from the firm.
These new capabilities as well as the full suite of risk services are currently already fully integrated into the State Street investment analytics dashboard on my.statestreet.com, the release said. Users can access a more comprehensive view of their investments across risk, performance, alternatives and compliance.
The firm's reallocation tools assist clients with risk budgeting. Economic stress tests also go well with State Street’s existing historical and predictive risk analytics capabilities. Product coverage has also been expanded across all asset classes such as support for fixed-income products.
State Street’s Risk Services include multiple Value at Risk (VaR) calculation methods, absolute and relative risk measures, portfolio characteristics, advanced stress-testing and “what-if” capabilities. Additionally, position-based risk services deliver a full revaluation methodology with daily 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 included.
State Street has also included new performance and compliance functionality to the investment analytics dashboard for access to more graphical and comprehensive information. The new compliance features enhance online fail management workflows by having new alert charting capabilities and the ability to see all compliance results, not just exceptions, over flexible timeframes for quick access to all data.
“This step forward is significant in implementing our investment analytics, internal data warehouse, dashboard and information delivery strategy," said William Pryor, senior vice president and head of State Street Investment Analytics.
“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 Co. “They have 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.”