Volume 2. Issue Number 8
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In this issue we present:
News about Spaulding's 2 nd
Annual International Trends In Attribution
The i-P-A 60 second interview with Paul Stevens, CEO of Cutter Associates
News about Osney Media’s 12 th Annual Client Reporting & Servicing
A reminder about IIR's 16th Annual Performance Attribution Risk
Management Conference - get an additional £100 discount !
Read about the training services offered by the Performance & Risk
Over 5,500 words of some of the latest market news from around the globe
An outline of upcoming seminars and events of interest
Volume 2. Issue Number 8
Volume 2. Issue Number 8
Volume 2. Issue Number 8
i-P-A 60 Second Interview with
Paul Stevens, CEO Cutter Associates Europe
Volume 2. Issue Number 8
Cutter recently did a review of performance vendors, tell us some more about this research
The Performance research was part of our Update service: every 6 months we take a popular topic and ‘refresh’ it. For this Update
we looked at over 20 vendors and 30 systems in a very comprehensive fashion: the RFI spreadsheet used as part of assessing each
system ran to over 1300 questions and the final document was over 450 pages long! As always, we assessed all aspects of the
products, from functional coverage to technology base to company risk. Speaking as someone who has seen Cutter from both sides
– as a client as well as an employee – I never fail to be impressed by the diligence, depth and accuracy of the research coverage.
You have recently combined forces with ISC in Europe. What was the motivation behind this
Both firms believe in giving the client the very best service possible. Together we can offer our clients a ‘one-stop shop’ to help
them with all of their consulting needs, from strategic advice to implementation management and support.
What diferentiates Cutter's Benchmarking, Research and Consulting from others
The biggest differentiator is that we have these three mature, well-formed and highly-configurable services that complement each
other. Cutter is entirely focussed on the buy-side: we pride ourselves on the depth of experience and expertise within the firm and
the breadth of coverage we have within the asset management industry. The average tenure of our staff in asset management is
15 years; our research membership is over 180 firms, who between them manage over $23 trillion; our benchmarking membership
is over 50 firms; we’ve done literally hundreds of consulting assignments (well over 400 at the last count).
What is next for AdvantEdge
To be candid, I have no idea what topic will be covered next in our AdvantEdge series, but I do know that the most recent article
looked at the use of OMS products within hedge funds. This year subjects have included investment research, long-short funds,
outsourcing and the importance of standards (e.g. GIPS), controls and oversight in ensuring a professional approach to investment
Where is your next planned holiday
Patagonia. We’re going on a cruise around the Cape Horn – over New Year! We’ll be celebrating the birth of 2009 in the company
of glaciers and penguins!
What's the last CD you bought
I’ve just returned from San Francisco and, as always, my bag was packed with cheap CDs that I get at Amoeba Records in the
Haight. Amongst others, I came back with Aimee Mann’s latest – ‘@#%&! Smilers’ - as well as Deep Purple’s ‘Machine Head’ ....
What three things would you need on a desert island
Beer, beer and, well, beer .....
Do you prefer cats or dogs
We have one of each, so this is a tough one to answer. I’m going to have to fudge it by saying that for sheer enthusiasm and
exuberance, our black Lab, Frannie, would be my choice, but for coolness in all situations, it’s the cat, Buster.
What was your favourite event at the Olympics
From the perspective of being able to at least participate in the event, Double Trap (a form of clay shooting). I was at Bisley before
the Games and had the pleasure of watching the British squad practising – very impressive.
Do you prefer swimming in the sea, a lake, or a swimming pool
We are having a swimming pond built in our garden: it’s a cross between a pool and a pond. You can doggy-paddle between the lily
What is your favourite type of food
Indian. The hotter and spicier the better.
Volume 2. Issue Number 8
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DST International (DSTI), a leader in business solutions for the investment management industry, employs Service
Oriented Architecture (SOA) on the latest version of HiPerformance to achieve optimal deployment flexibility and
exceptional scalability. The Global Operating Model enables asset managers to deploy a single software solution across all
offices, while maintaining speed and flexibility.
HiPerformance's Global Operating Model is expected to help managers drive down infrastructure costs through the
deployment of a single application and database across multiple time-zones and offices. In a recent benchmark,
HiPerformance calculated a month's worth of returns at the security level for seven million portfolios on a single application
server in five hours.
Historically, asset management firms have had to manage a trade-off between scalability and functional richness. The new
HiPerformance is designed to remove practical scale restrictions, while providing a broad range of performance analytics,
including returns, contribution, attribution, look-through analysis, risk and composite management - across all instruments,
and all within a single, enterprise solution.
DSTi Global Performance Solution Manager, Des Gallacher, said, "The new HiPerformance has been developed in close
collaboration with several of our largest and most sophisticated clients, who were seeking greater scalability to manage
ever-increasing volumes, and to achieve cost reductions through efficiency gains, while retaining the rich functionality they
need to properly analyze their complex investment strategies. In the current business environment where cost containment
is paramount, the value proposition for IT projects must be beyond reproach. With that in mind, we have invested over
8,000 man days of R&D to supercharge our solution, and will continue to invest heavily over the next couple of years to
consolidate our position at the top end of the market. We are working closely with existing clients during our initial
application roll-out, and are also seeing sales interest from prospective clients."
HiPerformance supports GIPS compliance and incorporates performance, attribution, decomposition and composite
functionality across all currencies and asset classes. It can be deployed either in-house or as an ASP with web-based tools
for inquiries and report distribution.
Finsbury Solutions, a leading supplier of spreadsheet management and compliance software to the financial services
sector, announced that leading global alternative asset manager Kohlberg Kravis Roberts & Co (KKR) has implemented
Finsbury Solutions’ advanced Spreadsheet Workbench software system.
Spreadsheet Workbench is based on the latest Microsoft technologies, including SQL Server 2005 and SharePoint 2007, and
provides auditability and control over business critical spreadsheets. The system provides finance, risk and audit
departments with enhanced transparency and control over the financial reporting process in accordance with the latest
financial legislation, such as Sarbanes-Oxley..
Wilshire Analytics, a global leader in providing innovative investment portfolio analytics and a business unit of
Wilshire Associates Incorporated, announced the launch of a next generation version of the Wilshire AtlasSM equity
analytics system. The Wilshire Atlas Version 11.0 (“Atlas v11”), which provides an integrated collection of tools to manage
global equity portfolios for active strategies, includes a number of significant new enhancements to the user interface
improving the flexibility and general ease of use of the system both for experienced and first-time users.
“Innovation focused on expanding, improving and updating is a continual process as Wilshire Equity Analytics responds to
the needs of its clients around the world,” noted David Hall, senior managing director of Wilshire Associates Incorporated
and head of Wilshire Equity Analytics, a division of Wilshire Analytics. “In times such as these, with regulators, boards of
directors and money owners reacting to market volatility by focusing on risk-adjusted returns, as well as the sources and
contributions to risk, Wilshire Analytics’ clients are increasingly turning to our multi-factor risk and attribution analyses to
gain new insight, control risk and provide more comprehensive reporting to their clients,” Hall continued.
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“During the course of the last year, the Wilshire Atlas development team has focused its efforts on the development of a
new Graphical User Interface (GUI) for the Wilshire Atlas system,” Hall said. “The goal of this project was to advance both
the technology that supports the interface, and to improve the functionality of the GUI to facilitate both the organization
and management of portfolios within the system. Additionally, the GUI development was designed to make access to the
core reports and tools in the system more intuitive, and more straightforward, for both experienced and new users alike.”
All portfolios and indexes loaded in the Wilshire Atlas system now may be viewed and organized within a customizable
folder structure. This new Portfolio Navigator was designed to facilitate access to saved portfolios for both the running of
new reports and the editing of portfolio holdings. The holdings of each portfolio in the system are now be accessed via the
Portfolio Navigator. Upon opening a portfolio, asset positions are displayed in a new portfolio holdings window for every
date on which the portfolio has been loaded.
Based on the GUI technology employed in Microsoft® Office 2007, the Wilshire Atlas GUI now gives users access to the
analysis tools and utilities of the Wilshire Atlas via a multi-tab toolbar or “ribbon.” Available at all times in the user
interface, the Wilshire Atlas ribbon groups each tool in the Wilshire Atlas by function type, thereby displaying in one
convenient place all appropriate options for the task at hand. The ribbon also offers users direct access to the tools within
the Wilshire Atlas without first having to open a portfolio or create a portfolio list.
Wilshire also has increased the multi-factor risk and attribution functionality of the system to allow users to perform
flexible decomposition of risk and return contributions into any user-defined grouping scheme within the system. The risk
and factor attribution modules also have been expanded through the addition of a number of new reporting features,
including new security detail and linked-period analysis reports. In addition, a new HTML reporting format has been added
to the system. Reports built using this format exhibit increased levels of interactivity and, using this format, it is possible to
construct group-based attribution reports in the Wilshire Atlas with full drill down capability.
Beyond these developments to the basic system, the reporting capabilities of the Wilshire Atlas have been enhanced with
the development of a Microsoft Excel® plug-in associated with the Wilshire Atlas API (both require an additional
subscription), which gives users access to the core analysis functions of the system via custom cell functions from within a
Microsoft Excel spreadsheet. In this way, it is possible to build fully customized reports without needing to code new
Microsoft Excel macros.
Alongside the development of a new user interface, Atlas v11 also exhibits enhanced risk and factor attribution reports.
Both the Risk Analyzer and model based Factor Attribution tools have been extended to incorporate a number of new
reporting options. In particular, the Risk Analyzer application has been developed to include the following enhancements:
• New flexible decomposition of risk reports
• New “multiple portfolio” summary
• User-defined Value at Risk (VaR) Calculation
• Enhanced reporting of security level risk
The multi-factor attribution module in the system has also been expanded and now exhibits a number of new reporting
• Flexible decomposition of return
• New linked multi-period reports and multiple portfolio summary reports
• Enhanced security detail return attribution reports
Wilshire Analytics, a worldwide leader in providing innovative portfolio analytics and a business unit of Wilshire
Associates Incorporated, a leading global investment services and consulting firm, announced the launch of the Wilshire
Axiom APISM for the Wilshire AxiomSM global fixed income analytics solution.
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“By offering an application programming interface – API -- with the ability to incorporate Wilshire Axiom analytics,
characteristics, risk and performance attribution data directly into third-party applications, we continue Wilshire’s
commitment to providing our clients with enhanced system capabilities while maintaining industry-standard, high-quality
analytics on fixed income securities,” said Peter Matheos, PhD, senior managing director and head of Wilshire Fixed Income
Analytics, a division of Wilshire Analytics.
The Wilshire Axiom API allows clients of Wilshire Axiom, the single integrated system for global fixed income analytics,
performance attribution, risk management, scenario analysis and portfolio optimization, to “develop and create customized
reports using Wilshire Axiom analytics,” Matheos said. “The Wilshire Axiom API was developed for easy integration with
familiar products, including Microsoft® Excel®, Microsoft® Windows® operating system, Microsoft® ASP.NET, Microsoft®
SQL Server® and related applications. Clients can also immediately utilize the Wilshire Axiom API with Java , PERL,
Python, Microsoft® Visual Studio C++®,Microsoft® Visual C#® and Microsoft® Visual Basic®.” Matheos added that the
Wilshire Axiom API package is delivered with full, complete documentation, including coding examples, and several readyto-use
report templates for Microsoft® Excel®.
Matheos will lead Internet webinars demonstrating the Wilshire Axiom API as part of the ongoing Wilshire Associates
Master Class series. “The Wilshire Associates Master Class Internet Webinars are delivered throughout the year by senior
executives of Wilshire Fixed Income Analytics on a variety of fixed income topics,” said Mark Lewis, managing director and
head of global client relationship management and business development for Wilshire Fixed Income Analytics. Recent
topics include ‘Fixed Income Portfolio Stress Testing’ and ‘Multi Factor Fixed Income Performance Attribution.’
Wilshire Analytics is a business unit of Wilshire Associates Incorporated, a leading global investment services and consulting
firm which has evolved from a pioneering provider of risk management tools into a highly regarded organization specializing
in investment technology solutions, manager-of-managers investment solutions and institutional investment consulting
Following a full evaluation of a large range of investment management solutions, Swiss Life, a leading international life
insurance and pensions specialist, has selected SimCorp Dimension.
Swiss Life will use SimCorp Dimension as its new platform for asset management, principally supporting order management,
portfolio management, compliance, performance measurement and accounting (IFRS) as well as the corresponding
“In addition to the advantage of a seamless solution, the deciding factors were SimCorp Dimension’s comprehensive
functionality as well as the availability of the latest financial instruments,“ says Patrick Frost, group chief investment officer
of Swiss Life. “Intensive due diligence has shown that our full requirements can be met.”
“We are delighted to welcome this leading insurance company, Swiss Life, as a new customer. As a high profile firm, it will
provide an important reference for our product in the Swiss market,” explains Piero Visani, managing director SimCorp
QuIC Financial Technologies Inc., a leading global solutions provider of risk management, pricing and financial
analytics solutions, announced the introduction of its innovative structured product and exotics pricing offering called QuIC
Mechanics CDL that features an easy-to-use Contract Definition Language (CDL). Designed to help financial institutions
accurately determine price and risk for structured products, this new product provides clients with unmatched speed,
performance and visibility into pricing models; improving operational efficiency, transparency and time-to-market for its
products.companies in this market, ensures a dynamic feedback process whereby NumeriX’s products are continually
enhanced with the latest model innovations and user requirements.
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“We understand the unique challenges facing the banking and financial services industry , particularly when attempting to
address the issue of calculating pricing models,” stated Nigel Cairns, President and CEO of QuIC Financial Technologies, Inc.
“With the launch of QuIC Mechanics CDL, we are solidifying our footprint in the structured product marketplace, providing
our customers with a best-in-class tool to accurately price structured products and make better informed decisions across
A key component of QuIC Mechanics CDL is the Contract Definition Language, a high-level, human readable description of a
transaction, which brings added convenience and performance to a broad range of complex instruments and structured
products. QuIC Mechanics CDL represents a new, modularized packaging of QuIC’s models and solvers and allows for
standard interfaces, resulting in higher memory efficiency and significant performance improvements. It easily captures all
the data and information related to a trade, streamlines pricing model processes and defines new trade types in a fraction
of the time which facilitates quicker and more accurate pricing of structured products.
With a practical plug and play feature, QuIC Mechanics CDL integrates with many of the finance industry’s leading models
and eliminates the need for users to understand each specific programming language before creating a transaction,
resulting in increased interoperability and a high level of functionality and performance. With QuIC Mechanics CDL, the
Contract Definition Language is separated from the numerical solution, which means the user does not need to be an
expert in mathematics to perform the application. QuIC Mechanics CDL easily links to trade capture systems; powers the
analytics for third party providers; and improves the consistency across pricing and risk management in all areas of business
“With increased volatility in global markets and ever-changing requirements within the structured products market,
banking and financial institutions are demanding a faster, more robust pricing and risk structuring framework,” added Tony
Coppellotti, Chief Technology Officer for QuIC. “Our mission is to provide our clients with the most effective and accurate
quantitative solutions in the marketplace, so the launch of QuIC Mechanics CDL is a direct response to meet the needs of
our clients in this industry.”
This latest product offering from QuIC can also be adapted for modeling instruments for risk management requirements
such as calculating credit risk and counterparty exposure. This will provide consistency and accuracy to risk calculations of
complex instruments for banking institutions. In line with this announcement, QuIC has introduced new pricing models that
are used by QuIC Mechanics CDL, such as its enhanced Multi Currency BGM Model. The Multi Currency BGM Model allows
users to price most types of transactions in a single model, resulting in increased consistency and faster time-to-market for
Netik LLC, the industry's leading financial data management company announced an alliance with Advent
Software, Inc., a leading provider of software and solutions for the global investment management industry, to
integrate Geneva®, Advent’s award-winning portfolio management and fund accounting solution, and Netik Global
Securities Master, Netik GSMTM, a fully managed data service solution and utility for reference and market data. Netik
GSM provides a single source of reference and market data for Geneva® and leverages the Advent - Netik connectivity.
Netik and Advent have invested in an adapter, available ‘off-the-shelf’, to combine the two products. The new Geneva® /
Netik GSM Adapter solution will be licensed to users through Netik and will be maintained by both companies.
Geneva® / Netik GSM Adapter significantly enhances the delivery of reference and market data for downstream distribution
and full integration with consuming applications. The combined solution provides hedge funds, prime brokers and fund
administrators with a best-of-breed solution for reference and market data.finance markets, and we look forward to
working with the broader group to bring best practice to the European ABS markets.”
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Todd Gottula, Senior Vice President and Co-Head of Global Accounts for Advent, said “Geneva® has delivered world class
accounting and transaction processing to the market for more than a decade. Now, with a fully managed service solution
for reference and market data provided by Netik GSM, new prospects and existing customers have access to a single source
of the highest quality reference and market data.”
John Wise, Chief Executive Officer of Netik, stated: “Many of the leading fund administrators and prime brokers already use
Advent and Netik. , through this alliance with Advent, we are making Netik GSM readily available to the hedge fund market.
Getting reference and market data correct is key to any Geneva® implementation and indeed any solution for hedge funds,
and with over two decades of proven experience, Netik GSM is ideally positioned to deliver this. Hedge funds can quickly
and easily select their universe from the Netik GSM utility, enabling Netik GSM to be implemented within days.
Wise continues: “Our combined offering provides customers with a truly end-to-end solution for reference and market
SmartCo Software, a global software provider of Enterprise Data Management solutions for the financial industry,
announced its partnership with Thomson Reuters, the world’s leading source of intelligent information for businesses
and professionals, and the availability of its new Thomson Reuters Datascope connector.
Leading new generation Enterprise Data Management solution, Smart Financial Data Hub, provides a centralised EDM
solution allowing acquisition, centralization, validation and distribution of all enterprise data including securities, thirdparties,
index, benchmarks, funds, mandates, positions and transactions. Its cutting-edge technology accelerates design and
deployment of durable and upgradeable solutions. Thanks to an open, easy and highly flexible data model, SFDH allows
customers to reduce their risks, optimize their processes, meet regulatory expectations and decrease the time to market for
the delivery of new products.
The new connector emulates most of core business functionalities of Datascope Select and, from the SFDH interface, users
can now easily create and manage data requests on any kind of asset classes. The data template structure is dynamically
defined and triggers data information requests to Datascope Select in real time.
A breakfast briefing organized in Paris on June the 26th allowed SmartCo and Thomson Reuters to demonstrate to a large
audience of financial institution representatives the benefit of this new connector.
“By leveraging their Thomson Reuters data feed, our client will be able to enhance their data acquisition process and
improve manipulation and administration of large and complex data volumes” said Thierry Zemb, SmartCo Head of Product
Thanks to these two complementary solutions, Thomson Reuters for the information data and SFDH for their centralized
management, our clients will create a solid and reliable data container that could feed all internal information systems in a
flexible, user friendly and integrated way”. This event was also the opportunity for SmartCo to demonstrate latest
enhancements around integration of Thomson Reuters Commodity Data feed. Listed and OTC contracts with all their
characteristics are now available in the application for a large number of underlyings including oil, electricity, carbon
emission, gold, metals, fertilizer, rice wheat, etc.
“There is a great need from financial organizations for modern and powerful tools allowing automating acquisition and
extending the usage of data while keeping high level of control and validation process. Constant improvement of our
platform lets our clients keeping pace with market evolutions and innovations and building a scalable and industrialized
information system” said Mr. Zemb.
Volume 2. Issue Number 8
Markit, a leading provider of independent data, portfolio valuations and over-the-counter (OTC) derivatives trade
processing to the global financial markets, announced that it was voted Data Vendor of the Year at the 2008 Global
The accolade recognises data vendors that have made a significant contribution to the buy-side community thanks to the
quality of their financial information services. The panel of judges was comprised of Global Investor’s editorial team who
consulted independent third parties.
Global Investor noted that Markit has established itself as a leading player in the OTC markets, setting industry standards in
independent pricing, portfolio valuations and trade processing across asset classes. The panel highlighted the role played by
the Markit indices in the credit markets as well as the work the company has undertaken to increase the efficiency of the
matching, confirmation and settlement processes within the trade life cycle.
Caroline Allen, Editor of Global Investor, said: “The work Markit is doing to promote understanding, transparency and
efficiency on the buy-side was considered extremely valuable. The importance of reliable, up-to-date data and data systems
has never been greater.”
Mike Rushmore, Executive Vice President, Sales and Marketing at Markit, said: “We are delighted that our contribution to
the industry has been acknowledged by Global Investor with this award. With a number of services specifically designed for
the buy-side, Markit now has more than 1,000 buy-side institutions using our services to manage risk, enhance trading
activities and improve operational efficiency.”
Global Investor is a monthly magazine dedicated to the international investment community.
Data Explorers Limited, the securities finance specialists, announced that it has been appointed by Clearstream
Banking to provide performance measurement and benchmarking for their securities lending programme. The company will
also use Data Explorers’ Transaction Explorer service to assist with trading decisions, in London and Luxembourg.
Jean Robert Wilkin, Executive Director and Head of GSF Product Management at Clearstream said: “We are confident that
Performance Explorer will enhance the service we offer to our lenders. Performance Explorer and Transaction Explorer will
enable us to ensure our clients are achieving the best returns and maximizing the lending value and potential of their
Julian Pittam, global sales director at Data Explorers added: “We are delighted to welcome Clearstream Banking to our
service, a key tri-party lender who will extend our reach across Europe.”Debra A. Baker, managing director, Global Product
Management - Performance & Risk Analytics at BNY Mellon Asset Servicing, adds: “Now, more than ever, our clients are
looking to us to provide advanced attribution methodologies, intuitive risk management tools, and extended reporting
capabilities. Our alliance with Wilshire will assist in empowering us to continue to meet the client demand for advanced risk
management services across the regions and across multiple market segments.”
FINCAD and SimCorp have entered into an agreement to integrate FINCAD's derivatives pricing software into
SimCorp's investment management enterprise solution, SimCorp Dimension.
The global agreement extends SimCorp Dimension's integrated pricing mechanism to encompass a wider range of
derivatives than ever before. These include credit derivatives and instruments implemented within the system's new
XpressInstruments framework, such as exotic derivatives, structured products and hybrids. These can now be valued
directly from within SimCorp Dimension using FINCAD's advanced theoretical pricing solutions.
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As a result SimCorp Dimension customers can eliminate data manipulation tasks required to price such positions and thus
reduce operational risk while simultaneously improving efficiency.
Søren G.A. Pedersen, vice president for partner development at SimCorp comments, "FINCAD derivatives pricing expertise
perfectly complements SimCorp Dimension, allowing us to offer our customers access to timely, accurate and proven
pricing for credit and other more complex derivatives seamlessly from their existing SimCorp Dimension solutions."
Bill Stewart, Vice-President of Sales at FINCAD comments, "As derivatives are increasingly traded on an individual basis, a
precise valuation of each contract is crucial in providing an accurate portfolio valuation. With SimCorp joining the FINCAD
Alliance Program, we are delighted to assist SimCorp customers to achieve this and to stay ahead in 's international financial
FinAnalytica Inc., provider of post-modern risk management and portfolio construction analytics, and RIMES
Technologies Corporation, leading financial data aggregator, announced a partnership that will allow SmartFiles,
RIMES’ full-service customized data delivery solution to feed FinAnalytica’s CognityFoF analytics platform.
SmartFiles take the pain out of data processing, providing immediate access to over 200 premium financial sources and
incorporating in-house information as easily as third-party datasets. All data sources become accessible via a single, direct
data feed via the Cognity software suite.
Christian Fauvelais, CEO of RIMES Technologies, commented: “RIMES pioneered the delivery of financial data over the
Internet. We introduced SmartFiles in response to clients’ demands for something which would simplify in-house data
management, leaving them to focus on their core business. Through customized file delivery, FinAnalytica will receive
quality data which exactly meets the specific needs of their clients, formatted the way they want.”
FinAnalytica will use the SmartFiles service to aggregate and initially deliver over 600 branded risk factor indices from
leading sources including Standard & Poor’s, Russell, MSCI, Merrill Lynch, Citigroup, CBOE and Hedge Fund Research.
“We are very excited about our new partnership with RIMES,” said Doug Martin, CEO of FinAnalytica. “Integrating RIMES
SmartFiles service into our CognityFoF platform allows us to be responsive to customer demand for high quality, timely risk
factor data. Using RIMES’ best-of-breed data aggregation and delivery allows us to focus on FinAnalytica’s best-of-breed risk
and portfolio construction analytics.”
FINCAD announces the launch of FINCAD Market Data, addressing an important need in the industry for valuation and
risk analytics combined with market data. FINCAD has provided industry-standard analytics to financial professionals since
1990, and now offers a fully-integrated solution with financial analytics and market data to support virtually all FINCAD XL
FINCAD Market Data is already integrated with the latest version of FINCAD XL. This means users won’t need to maintain or
integrate separate market data processing systems and software. Licensed users can access FINCAD Market Data from
anywhere using the Internet.
FINCAD Market Data collects, verifies, and stores market data from the world’s major exchanges and OTC markets every
day. Current and historical data is available to support valuations back to December 1999.
“Industry challenges are increasing due to the need for pricing transparency,” said Jack McKeown, Director of Product
Management at FINCAD. “And it's happening quickly. ’s financial markets demand independent, trusted valuations and risk
measures. These are busy professionals so the ability to get reliable, accurate end-of-day market data with a click of a
button is critical.”
Volume 2. Issue Number 8
NumeriX LLC, the leading provider of independent cross-asset analytics for derivatives and structured products, has
opened the doors to its new global headquarters in Midtown, Manhattan at 150 E. 42nd Street, New York. A significant
portion of NumeriX’s 140 employees will occupy nearly 25,000 square feet of space in the facility, which was most recently
occupied by Loews. NumeriX maintains 10 offices throughout the Americas, EMEA and Asia/Pac.
Given the issues in ’s financial markets, financial institutions, banks, insurance companies and corporate treasurers alike are
looking for solutions to manage, value and hedge existing derivative investments to make prudent investment and risk
management decisions. This heightened demand has led NumeriX to increase its professional staff to meet the
requirements of its rapidly growing client base.
“Through this challenging time, we have been able to welcome many talented and experienced professionals to our family,
as we’ve needed to strategically grow our professional staff to accommodate the demands of a market in transition,” said
NumeriX President and COO, Steven R. O’Hanlon. ”In selecting our new headquarters, we were very discriminative to
ensure that the space promotes collaboration between our business leaders and is reflective of the world-class organization
that we have become.”
NumeriX’s new headquarters features natural light throughout the workspace, open areas for increased collaboration, and
additional room for future talent – as the organization continues to grow.
MSCI Barra, a leading provider of investment decision support tools worldwide, including indices and portfolio risk and
performance analytics, is pleased to announce that the California State Teachers' Retirement System (CalSTRS), the second
largest public pension plan in the US with USD 162.2 billion in assets under management, has chosen to use BarraOne for
enterprise-wide portfolio risk management.
BarraOne will be used by CalSTRS to help it monitor portfolio risk and make asset allocation decisions, as well as in the
portfolio risk management of CalSTRS internal equity program. The external equity group at CalSTRS already employs Barra
Analytics on FactSet to help in the selection and monitoring of their external equity managers.
Baer Pettit, Managing Director and Global Head of Client Coverage at MSCI Barra, said, "We are delighted that CalSTRS has
chosen BarraOne to help them manage and monitor portfolio risk throughout their organization. The fact that BarraOne is
being used by different groups within CalSTRS to help them with the various steps of the investment process reinforces
BarraOne's robust functionality and flexible structure.”
CalSTRS is one of several major public pension plans in the US to adopt BarraOne to better gauge and manage the risk
across asset classes in their plan. CalSTRS provides retirement related benefits and services to teachers in public schools
and community colleges throughout California.
NumeriX, the independent leading analytics provider for the structuring, pricing and valuation of derivatives and
structured products announced a partnership with Pyxis Systems, a provider of technology solutions and services to the
global financial derivatives industry. This groundbreaking partnership will expand integration and support services for
NumeriX customers throughout AsiaPac, from Hong Kong and India.
Since establishing its Asian operations in 1998 with offices in Tokyo and Singapore, and most recently in Hong Kong,
NumeriX has developed a reputation for delivering the most sophisticated analytic solutions for structuring and pricing
derivative and structured product instruments, making it the solution of choice for some of the largest institutions in the
region. Moreover, NumeriX's relationships with over 40 partners provide institutions the ability to build end-to-end
solutions - from pre-trade structuring, through pricing, trade capture and valuation.
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As most financial institutions have existing relationships with many of NumeriX partners, such as Reuters, Misys and
Bloomberg, potential users can seamlessly integrate NumeriX market standard analytics into their current platforms, thus
expanding their current platform to support the widest range of derivative products.
Through this partnership with Pyxis, NumeriX customers in India and Southeast Asia will have enhanced regional support
for training, integration and professional services, including system and market data integration. Additionally, clients will
have the ability to work with the NumeriX-certified staff of Pyxis, to design and develop new instrument types and add-ins
for NumeriX's Excel-based offering, NumeriX 7.
"With the explosive growth of the derivative and structured products markets, as evidenced by the opening of new markets
in the region, coupled with the need to manage and navigate the troubled credit markets, there has been a significant
increase in demand for NumeriX analytics," said NumeriX President and COO, Steven R. O'Hanlon. "Through our partnership
with Pyxis, NumeriX now offers the largest support infrastructure of any analytics provider in the region."
"Pyxis offers Derivatives Consulting Services to banks and financial institutions with superior assistance through its
experience in the derivatives and technology domain. Pyxis is working along with several large Indian and foreign banks and
financial institutions, helping them set-up derivatives desk frameworks, implement derivatives systems, provide
professional services and develop custom applications for front- and mid-office analytics. A Partnership with NumeriX will
help Pyxis serve the high-end derivatives players across Asia," said Pyxis CEO, Nandlal Bhatkar (Johnny).
Interactive Data Corporation, a leading provider of financial market data, analytics and related services,
announced that its Pricing and Reference Data business has expanded its interest rate swap valuation service by adding 3
p.m. ET valuations, as well as independent valuations for compounding swaps, and certain historical valuations for interest
rate and credit default swaps.
Interactive Data’s interest rate swap valuation service assists clients by providing information they can use to efficiently
value their portfolios containing these over-the-counter (OTC) derivatives. The Company currently offers interest rate swap
valuations in six major currencies and estimates that its coverage includes approximately 95% of the total notional amount
of interest rate swaps outstanding. The International Swaps and Derivatives Association (ISDA) found that the notional
amount of interest rate derivatives outstanding (which include interest rate swaps) rose 34 percent year-over-year to
$382.3 trillion at the end of 2007.
“As more investment portfolios contain interest rate swaps, we’ve expanded the capabilities of our valuation service to
respond to client demand for a broad range of independent valuations,” said Shant Harootunian, managing director of
evaluated services, Interactive Data Pricing and Reference Data. “Our new 3 p.m. interest rate swap valuations are
synchronized with the corporate bond evaluations we currently produce, and they complement our end-of-day valuations
for this asset class. Accounting firms and hedge fund processors have also identified historical valuations for interest rate
and credit default swaps as critical for monitoring client positions, as they need to retrieve valuation levels reflecting the
previous end of month. We also added compounding swaps to enable clients to obtain valuations on interest rate swaps
with nontraditional structures.”
“As investment portfolios become more diverse and complex, there is a heightened need for independent valuations of
growing numbers and categories of hard-to-value financial instruments,” said Stephen Bruel, analyst, Securities & Capital
Markets for TowerGroup. “In addition, we believe that market data providers who can automate the process for delivering
valuations for a broad range of OTC derivatives and evaluations on millions of fixed income securities will continue to
experience high demand for their products and services.”
The interest rate swap valuation service offers user-friendly asset setup screens and the ability to upload trade data and
download output files which can help limit the occurrence of manual input errors.
Volume 2. Issue Number 8
Interactive Data provides current and historical valuations for a wide variety of alternative investments including: fixed-forfloating
interest rate swaps (including forward starting swaps); as well as third party valuations for syndicated bank loans;
single name credit default swaps (CDS); and CDS trades linked to the Markit CDX and iTraxx® families of indices. Historical
valuations for interest rate swaps are available going back to June/December 2007 based on the currency of the swap, and
are also available for credit default swaps for recent trading days and month-ends.
Interactive Data Corporation, a leading provider of financial market data, analytics, and related services,
announced that its Managed Solutions group has signed an agreement with UNEDISA (Unidad Editorial S.A.), publisher of
Expansión, and a leading financial information company in Spain. Under the agreement, Interactive Data has rights to
market and distribute funds data provided by Expansión in Spain and Portugal, as well as calculating, maintaining and
distributing Expansión’s new star ranking of funds in Spain and Portugal.
The information provided by Expansión comprises pricing and fundamental data for all funds licensed in Spain and Portugal
across all funds classes, and includes fundamental data, daily prices and history. Based on this information, Interactive Data
calculates and maintains, for and on behalf of Expansión, the “Expansión Ranking”, a star ranking launched by the
newspaper in January 2008. An annual awards event recognises the leading Spanish investment companies for their
performance over the past year and is an important occasion for the Spanish funds industry.
Interactive Data will also enhance Expansión’s web porta, to provide extensive funds data – similar to the newspaper
offering – as well as fact sheets, search and comparison functionalities using Interactive Data’s Funds Suite solution, a
service that provides flexible tools for customised web offerings.
"We are delighted to have signed this agreement with Interactive Data, a prominent global financial information provider,"
said Jesús Martinez de Rioja Vázquez, editor at Expansión. "We believe that this relationship will add value to our end users
in the funds industry, and the new star rankings can help our readers make informed investment decisions."
“The new relationship with Expansión gives us an excellent opportunity to significantly enhance our data offering with
comprehensive funds information for the Spanish and Portuguese market. The relationship between Expansión and
Interactive Data further strengthens our position as a leading funds data provider,” said Carsten Dirks, managing director,
Interactive Data Managed Solutions. “Together with Expansión, we aim to increasingly establish this vast funds data
offering as an indispensable reference source not only for customers in Spain and Portugal, but also for the global funds
Volume 2. Issue Number 8
Alternative Investing for Pension Funds
SPS Conferences | London
RealWorld Conference 2008
IPD | Cambridge
Concentrated Stock Management Workshop
CFA Institute | New York, USA
Client Reporting North America
Osney Media |New York
6th Annual Alternative Investments Summit
IMN | Phoenix
The Nordic Alternative Investment Forum
IQPC | Stockholm
GIPS 2008 Annual Conference
CFA Institute | Boston
12 th Annual Client Reporting & Servicing
Osney Media | London
2 nd Annual International Trends In Attribution
Spaulding | Philadelphia
16 th Annual Performance Attribution Risk Management
IIR | London
For more information on seminars and events, visit