RBC Global Services’ investment analytics arm, the Benchmark(TM) group, today announced that it has entered into a strategic alliance with RiskMetrics Group, the financial analytics and technology firm. The aim of the alliance is the creation of an integrated risk analytics and risk management product for RBC Global Services’ institutional clients. The product, which will be called ‘Benchmark(TM) Risk Management’, will complement RBC Global Services’ existing Benchmark(TM) suite of analytical products and services for institutional investors.
The Benchmark Risk Management product will provide clients who purchase it with a forward look at the potential sources of risk in their investment portfolios, and will seek to identify and measure risk concentrations, diversification benefits, and individual position impacts using Relative, Marginal and Incremental VaR measures, using Parametric, Historical, and Monte Carlo methodologies. A sensitivity analysis will allow clients to optimize the risk and reward trade-offs within their investment portfolios. In addition, portfolios can be stress-tested against pre-defined market scenarios or client-defined scenarios to estimate potential losses during abnormal market conditions. Benchmark Risk Management will be rolled out to clients later in the year and will be accessible through RBC Global Services’ ViewFinder Web portal.
“RBC Global Services will continue to deliver comprehensive and leading edge analytical products to our institutional clients,” says Fred Francis, Vice President, Securities Finance and Global Products. “Our strategy is to ally ourselves with best of breed solutions providers, and RiskMetrics Group is recognized as the industry standard in risk management solutions. Our goal is to develop cost effective, integrated solutions that meet the most sophisticated market needs today and in the future.”
RBC Global Services says the Benchmark Risk Management product is just one further component of an overall investment analytics system which provide s clients with
data integration, calculation and reporting services.As the investment analytics arm of RBC Global Services, the Benchmark group delivers several services designed to assist institutional clients in managing their portfolios. RBC Global Services already offers Performance Measurement, Attribution Analysis, Risk Management, Compliance Monitoring, Commission Recapture and Peer Comparison tools.
“We are extremely pleased to be entering into this alliance, as it will showcase RiskMetrics Group’s leading risk management technology among a much broader investing audience through RBC Global Services,” said Ethan Berman, CEO of RiskMetrics Group. “RBC Global Services will be providing an integrated analytics solution which offers ease of access to information through the web as well as customized reporting tailored for each client.”