Analytical Insights - Q1 2014

Analytical Insights is a quarterly publication providing clients with investment information that can be used in the process of monitoring global assets.

A Message from Debra Baker

Managing Director, Head of Global Risk Solutions
BNY Mellon Asset Servicing

So far, 2014 has been a very busy and exciting year for Global Risk Solutions. In conjunction with Dr. Harry Markowitz, we successfully launched the white paper, New Frontiers of Risk: Revisiting the 360° Manager. The feedback we have received from clients and the marketplace has been very positive. If you have not had a chance to read our paper, I encourage you to do so. We believe that this thought provoking piece on risk management has reinforced to the investment community that we are at the forefront of risk management trends and truly understand the current evolution or “revolution” of this complex practice.

In addition to our thought leadership program, I wanted to share with you some product development activity that has been taking place in our EMEA region. 

  • Designed to support UCITS or AIF’s requirements, our Risk and Compliance Reporting (RCR) solution provides an independent review of risk limits that can be monitored to help support Management Companies/Boards achieve their oversight responsibilities by assessing the risks called out in the directives. The reporting toolkit uses a series of dashboards featuring a traffic light approach to identify early warnings and breaches, thus enabling clients to oversee the risks and exposures of selected funds, therefore enabling them to take the necessary action. Our skilled investment professionals will work closely with our clients to help the Management Companies / Boards achieve their oversight responsibilities, manage queries and change requests.
    While this service was originally designed to support UCITS and AIFs, with 13 months of daily history now available it can also be used to provide further analytical insights into funds.
  • In response to the increased focus pension funds are placing on matching their assets to their present and future liabilities, often via the use of Liability Driven Investment (LDI) structures, we have worked with a third party to develop a Liability Reporting Service. For UK pension funds, this is quarterly service includes a detailed quarterly package, focusing on asset vs. liability funding ratios, flight or glide plans (which show minimum returns to reach full funding under different contribution schedules) and other stress and liquidity analysis focused on the asset vs. liability gap. The service will enable our pension fund clients to better understand and manage their assets against their liability projections, incorporating different economic scenarios and conditions.

As you can see, we are laser focused on risk management. Our goal is to provide you with products and services that will help you manage the ever changing regulatory requirements and mitigate the risks in your portfolios.
Best regards,

Debra A. Baker's signature
Debra A. Baker