RBC Global Services has entered an alliance with RiskMetrics Group to develop a new risk analytical service for its institutional clients.
The new product, which will be called 'Benchmark Risk Management', will complement RBC Global Services' existing Benchmark suite of analytical products and services for institutional investors. It will be rolled out to clients later in the year and will be accessible through the Canadian custodian's ViewFinder Web portal.
The service will provide enrolled clients 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.
Fred Francis, vice president, securities finance and global products, RBC Global Services says the alliance with RiskMetrics is the latest in a continuing programme of partnerships with third party vendors for the delivery of investment analytics products and services for institutional investors