Initiative to improve managers’ monitoring and reporting capabilities. DST International (DSTi) and Northfield Information Services have teamed up on a business solution geared to help asset managers improve their understanding and management of risk. The partnership will integrate DST’s simulation-based risk-analysis approach with Northfield’s factor models through DSTi’s Risk Engine.

The thinking behind the partnership is that the two separate companies that approach risk analysis from different directions can find a synergy that will provide a more holistic, complete picture of risk for investment managers. Until now Northfield’s factor-based models interpreted portfolio risk against a number of micro-factors, while DST’s service supported “stress testing and scenario analysis increasingly required by regulators for compliance in risk monitoring.”

“Our partnership with Northfield, is formed by our mutual recognition that no single methodology meets the entire needs of most investment management firms,” says Marcus Ansell, president of DSTi North America. “By collaborating, our respective products, from opposite ends of the analytical spectrum, strongly complement each other [and provide] a complete enterprise solution.”

The result, says DSTi’s risk-product manager Doug Coughlin, “a complete depliction of sources of risk and return” that leads to “improved communications options for our clients reporting in turn to their end-investors.”

DSTi is a London-based investment- and work-flow-management company. Boston-based Northfield provides portfolio efficiency analytics. – FWR

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