BNP Paribas Securities Services has launched a market risk monitoring tool for pension funds. The tool calculates the market risk against each individual security in a funds portfolio, enabling trustees to see a complete view of the market risk across the entire portfolio.
The tool seeks to enable pension funds to monitor risk independently of external advisors or asset managers who rely on external data to calculate portfolio-wide risk.
Commenting on the launch, Dietmar Roessler, head of client segment asset owners at BNP Paribas Securities Services noted that ongoing instability in financial markets combined with increasing regulation was changing pension funds approach to risk. The need to monitor performance independently of a schemes external advisors is growing in importance and funds are now taking a more active approach to risk-based governance,” he said.
This tool helps funds identify the investments that have the most marginal volatility, which then gives them the basis to diversify their investments based on a calculation of their risk. We expect to see a lot more risk-weighted delegation and this tool will be a key enabler of that.
The new web delivered two page reports can be published in every major European language and are part of BNP Paribas Securities Services MasterSuite for pension funds, built around asset protection, investment control and optimization of returns.
(JDC)