DSTi and Northfield Information Services integrate risk technologies

Marcus Ansell President DSTi North America said, "Our partnership with Northfield, is formed by our mutual recognition that no single methodology meets the entire needs of most investment management firms. By collaborating, our respective products from opposite ends of the analytical spectrum that strongly complement each other providing a complete enterprise solution. Combined they ultimately deliver a more complete depiction of sources of risk and return thus enhancing managers' ability to better understand and access performance."

Dan diBartolomeo Founder and President Northfield noted, "Asset managers need to understand their risks in order to build a sound strategy for accumulating wealth for their clients over long periods of time. In contrast, traders, risk managers and even regulators consider risk over shorter periods of time. Northfield's multi-factor risk models when combined with DSTi's simulation-based risk analytics allows risk management personnel and portfolio management to view risk in the same way."

Phil Hannay SVP Global Sales DSTi further explained, "Northfield's factor based models are used by portfolio managers to improve their investment process through understanding the risk in their portfolios against a number of micro factors. DSTi's risk solution supports the stress testing and scenario analysis increasingly required by regulators for compliance in risk monitoring. These two solutions integrated through DSTi's Risk Engine to address front end and middle office needs add value to institutional investors in ways no other single provider can offer."

Doug Coughlin, DSTi risk product manager summarized: "This partnership/solution provides the first risk product of its kind. Combining factor-based approach with a simulation approach offers a much-needed suite of best practice in risk analysis. We now can deliver tools to the market that overcome any drawbacks of our individual products all from a single consistent integrated platform. Institutional investors can continue to support traditional embedded methods of portfolio analysis while layering on full simulation based approaches as needed. This in turn will enable more rapid communications of risk estimates for traditional asset classes yet still be able to add more complete multi-asset and derivatives capabilities from a single platform. This complete depiction of sources of risk and return also leads to improved communications options for our clients reporting in turn to their end-investors."