HiRisk is a sophisticated enterprise wide risk management solution designed for Discretionary Funds, Hedge Funds, Super Funds, Mastertrusts, Wraps and High Value Wealth Portfolios across all asset classes. Suncorp Investment Management will implement HiRisk across its investment portfolios, which includes Australian equities, Australian fixed interest, International equities and fixed interest, listed property trusts and cash. HiRisk will introduce a common and consistent approach to measuring risk across these asset classes to improve the reporting and communication of risk.
Manager, Strategy & Planning of Suncorp Investment Management, Kevin Mumford, said HiRisk was chosen because of its functional fit and technical sophistication.
"We undertook an extensive tender process involving local and global software suppliers before choosing HiRisk," Mr Mumford said. "DSTi has a proven track record of success with HiPortfolio, a product Suncorp Investment Management currently uses. The implementation of HiRisk with our existing HiPortfolio solution is part of a new value at risk culture for us. We believe that it will become firmly entrenched in our investment process and provide a more thorough form of investment risk management for our investors.
"This is new ground for an Australian fund management organisation and we will be first in the market to work with DST International to find productive ways of integrating value at risk solutions into our investment processes. Suncorp Investment Management will have the ability to assist clients to develop or review client mandates using a value at risk approach. This will enable clients to consider the amount of risk implied in their investment mandate, resulting in a better understanding of risk versus return," Mr Mumford said.
"This implementation of HiRisk is another demonstration of the value of our solutions across the entire investment management spectrum," said Mr Ian Mathieson, Chief Executive Officer Australia and New Zealand for DST International.
"HiRisk produces a broad range of risk measures that can be tailored to any investment strategy and as it captures the characteristics of both the normal and non-normal market behaviour it will assist Suncorp Investment Management in analysing both expected and unexpected risks. Furthermore as it is designed for the web, it is an easy and cost-effective option for distributing to users via the internet."
HiRisk delivers a risk budgeting environment for optimised portfolio construction, supporting a total quality control approach throughout the investment process.
The Event Simulation Model (ESM) is a full valuation approach to enterprise and portfolio risk. HiRisk uses scenario based analytics, allowing users to drill down from summary risk measures into their underlying components. The ESM methodology eclipses alternative "black box" methodologies by revealing the sources of risk. Both enterprise and portfolio level risk management is facilitated by risk measurement that is transparent and actionable.
According to Suncorp Investment Management’s external consultant for the tender process, Mr Robert Johnson of Robert Johnson & Associates, "We felt that our recommendation of DSTi’s HiRisk was the ideal solution for Suncorp Investment Management as it provided the capabilities required. Sophistication, versatility and benefits to increase the performance of the business were hallmarks that confirmed its selection."