State Street Corp. said it was adding economic stress tests and investment performance heat maps to its risk analytics for institutional investors.
Its risk service will also add new portfolio reallocation tools and expanded investment coverage. The new features as well as other risk services are now integrated into its State Street Investment Analytics Dashboard.
The tools will give users "a more comprehensive view of their investments across risk, performance, alternatives and compliance" requirements, State Street senior vice president William Pryor said.
The reallocation tools assist clients with risk budgeting and the economic stress tests will supplement historical and predictive risk analytics. Product coverage has also been expanded across futures, options and fixed-income products.
“This step forward is significant in implementing our investment analytics, internal data warehouse, dashboard and information delivery strategy. These new capabilities provide clients with market-leading risk management solutions that support their analytics, portfolio construction, risk management and hedging functions,” said Pryor, head of State Street Investment Analytics.
State Street’s Risk Services include multiple Value at Risk (VaR) calculation methodologies, absolute and relative risk measures, portfolio characteristics, advanced stress-testing and “what-if” capabilities. In addition, position-based risk services deliver a full revaluation methodology with daily (T+1) or monthly reporting and analytics along with data collection, cleansing and augmentation services. Return-based risk measures, inventory management and portfolio construction tools are also available.
Performance heat maps provide color-coded, visual representations of the size and relative or absolute performance of a client’s portfolios with instantaneous ‘drill down’ and ‘drill across’ functionality, by plan, composite, portfolio, asset class, sector, country, industry or security.
Compliance features will include online fail management workflows.