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IAG Asset Management to implement DSTi’s Risk Solution platform as its front office investment management risk system

  • 01 December, 2005 14:09

<p>Sydney, 1 December 2005 - The leader in business solutions for the investment management industry, DST International (DSTi) has signed a contract to integrate its comprehensive investment management Risk Solution, as IAG Asset Management’s front office risk management system.</p>
<p>The sophisticated enterprise-wide risk management solution applies consistent methodologies across all asset classes and investment strategies using data that is integrated, validated and consistently cross-referenced for reporting and analysis. It is designed for Discretionary Funds, Hedge Funds, Super Funds, Mastertrusts, Wraps and High Value Wealth Portfolios across all asset classes. Risk measures can be aggregated to any level of the organisation, often revealing hidden and subtle risks.</p>
<p>IAG Asset Management, the asset management arm of Australia’s largest general insurance group Insurance Australia Group (IAG) with around $13 billion in funds under management for clients, selected DSTi’s Risk Solution following a rigorous selection process for its ability to meet the company’s Risk Management and Value at Risk (VaR) requirements.</p>
<p>IAG Asset Management is the second Australian fund manager to select the company’s Risk Solution. Suncorp Investment Manager went live with the first implementation in Australia in August 2005.</p>
<p>The contract with IAG Asset Management reflects a growing need for comprehensive investment risk management techniques and solutions as more Australian fund managers recognise the commercial and operational benefits they can deliver, according to DST International Chief Executive Officer for Australia and New Zealand, Mr Ian Mathieson.</p>
<p>“Earlier this year we completed industry research (DSTi Risk in Funds Management Report 2005) and 96% of our survey participants identified that they expected demand to increase for quantitative risk measures over the next four years. A majority also thought that increased reporting of risk will be mandated by legislation, with 57% believing APRA is very likely (24%) or somewhat likely (33%) to force managers to adopt banking-style risk management practices by 2009.</p>
<p>“Issues identified included lack of data, systems and resources as the major obstacles in producing detailed risk measurement capabilities. We are pleased to see that with the second Australian fund manager seeking to resolve the challenge of investment risk management with our risk solution, there is a growing awareness that the adoption of increasingly sophisticated investment processes achieve better outcomes for the funds manager and investor,” he said.</p>
<p>The contract to integrate DSTi’s Risk Solution extends the long-standing relationship between DSTi and IAG, which already uses DSTi’s HiPortfolio Asset Management solution.</p>
<p>“DSTi is proud to have been chosen to assist IAG Asset Management as they take risk management and integration of value at risk into daily investment management processes to a new level. Our risk engine offers an excellent functional fit as a natural extension to HiPortfolio for this valued customer,” Mr Mathieson added.</p>
<p>About DSTi’s Risk Solutions</p>
<p>DSTi’s Risk Solutions are designed for institutional investors and investment managers. The Event Simulation Model (ESM) is a full valuation approach to enterprise and portfolio risk. ESM provides a consistent approach to modelling traditional and alternative investment strategies across all asset classes. HiRisk produces a broad range of absolute and benchmark-relative risk measures that can be calibrated to any investment strategy.</p>
<p>The risk engine uses scenario-based analytics, allowing you to drill down from summary risk measures into their underlying components. The ESM methodology eclipses alternative “black box” methodologies by revealing the sources of risk. Therefore, enterprise and portfolio level risk management is facilitated by risk measurement that is both transparent and actionable. ESM captures the characteristics of normal and non-normal market behavior, providing consistent analysis of expected and unexpected risks that can be aggregated at any level of the organisation.</p>
<p>Editor’s Note: The report DSTi Risk in Funds Management Report is available for further information. Please contact Cathryn van der Walt on 0402 327 633.</p>
<p>About DST International (DSTi)</p>
<p>With 19 offices and over 1300 professionals to support its growing client base, DST International provides a unique and comprehensive range of investment management and business process management software solutions and related services to 600 clients in 55 countries.</p>
<p>About DST Systems, Inc.</p>
<p>Our parent company, DST Systems, provides sophisticated information processing and computer software services and products that help clients improve productivity, increase efficiencies, and provide higher levels of customer service. DST is organised domestically and internationally into three operating segments: Financial Services, Customer Management, and Output Solutions. DST operates one of the most advanced data centres in the world, which provides information-processing services to support the products within each operating segment. These products are further enhanced through the integration of DST's advanced technology and e-commerce solutions.</p>
<p>For more information please visit www.dstinternational or contact:</p>
<p>Cathryn van der Walt</p>
<p>12 Worlds Pty Limited</p>
<p>Tel: +61 (0) 402 327 633</p>

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