To help hedge funds meet new demands from regulators and investors, Algorithmics, the leading provider of enterprise risk solutions, today announced the launch of Algo Risk Reports, a new product optimized for hedge funds. The launch has been timed to coincide with the first of the new regulatory reporting requirements, UCITS IV, which will be introduced in Europe in July.
Algo Risk Reports has been designed for hedge funds looking for a cost- and time-effective solution for risk reporting and to meet regulatory reporting needs. The service provides pre-configured, static reports for regulatory, investor and internal stakeholders. Aimed at hedge funds that do not have an institutional-strength risk system, Algo Risk Reports aims to meet funds' demand for better asset coverage and more flexibility for derivatives.
Martin Botha, Director, Buy-Side Solutions, Algorithmics, comments: "Algorithmics has a scalable risk solution for hedge funds, regardless of their size, strategies and complexity. Algo Risk Reports is specifically focused on hedge funds looking for a product that is easy and quick to implement, that is comprehensive and cost-effective, yet remains robust and accurate.
Hedge funds are facing demands from all stakeholders for greater risk transparency. To meet these demands, Algo Risk Reports provides three reports for regulatory compliance, independent investor reporting and investment decision support. It also uses Algorithmics' full revaluation- and simulation-based approach, which means that the product is especially suited to the non-linear strategies undertaken by hedge funds of all sizes."
At a time when hedge funds face a new regulatory environment of UCITS IV, AIFMD and Dodd-Frank, as well as increasing demands from their investors for higher levels of risk transparency, Algo Risk Reports provides:
• Regulatory Reports, designed to comply with present and future regulatory requirements, while supporting appropriate levels of transparency
• Investor Reports, for better communication with clients, and to build investor confidence and attract/retain funds under management
• Investment Reports, to provide hedge fund management teams with analytics to better manage their fund(s) from a risk measurement, portfolio construction and decision support perspective.
Algorithmics' significant experience with institutional-strength risk systems and its proven risk expertise, such as the 'Mark-to-Future' methodology, means that Algo Risk Reports are designed to be accurate, easy to implement and up-and-running quickly.
Algo Risk Reports is a core component of Algorithmics' solution for hedge funds, Portfolio Construction and Risk Management for Hedge Funds, which now comprises two editions: Standard and Enterprise. Regardless of their strategy, level of sophistication or assets under management, hedge funds can start with the pre-configured risk reporting of Algo Risk Reports in the Standard Edition and follow the migration path between the editions as their risk needs change, to the fully customized risk system of the Enterprise Edition.
Dr Andrew Aziz, Executive Vice President of Buy-Side Solutions at Algorithmics, added: "Our strategy is to offer solutions that are appropriate for the sophistication level and size of each organization, rather than merely a 'one-size-fits-all' offering. Hedge funds around the world are simultaneously facing changes in regulation requiring increased levels of reporting, and increased expectations of transparency from investors. Our new range of options for hedge funds addresses these challenges and we believe is a truly unique proposition for hedge funds of all sizes in the marketplace."