LONDON: 17th June 2002: COR Financial Solutions, the leading provider of software for asset management, banking and trading, has announced the Â£2.3 million acquisition of London-based BITA Plus Consultants, one of the world's most advanced creators of risk management systems for financial markets.
COR has acquired BITA Plus as a strategic extension of its existing range of software services, and with the firm view that more sophisticated risk analysis will have a much greater role to play in asset management in the coming years.
Steve Osborne, CHAIRMAN & CEO of COR, said:
"Fund managers are under intense scrutiny by their clients and Trustees of Pension Funds to add value to portfolios within clearly understood risk parameters. Especially in light of the recent high profile industry events, there is a pressing desire to raise reporting standards in the investment industry."
"BITA Plus products give asset managers the tools to analyse and model the risk of their portfolios as well as structure the risks in line with a given set of investment objectives. Crucially, it also allows them to understand the risk associated with a portfolio and keep their customers better informed of risk at any time - thereby greatly reducing the possibility of unpleasant surprises."
BITA Plus' philosophy is that management of risk is an integral part of the investment process and should therefore not be seen or conducted as a stand-alone activity.
Laurence Wormald, BITA Plus Director of Research, says:
"Fund management firms cannot separate risk management from portfolio modelling, and rebalancing. By bringing together portfolio risk reporting, performance measurement and modelling, in a pre- not post trade environment, asset management companies will have a much sounder basis to undertake the investment process. It is BITA Plus' objective to facilitate that convergence and thereby help improve investment managers' effectiveness and sustain the confidence of their clients."
Using BITA Plus software, fund managers can quantify risk accurately and undertake factor risk analysis. They have the option to use it for both pre-trade and post trade reporting - useful for the fund manager, as well as compliance officers and internal risk managers.
For institutional and hedge fund managers and researchers, who require sophisticated quantitative research tools, the BITA Plus solution offers powerful portfolio optimisation and back testing functionality. So as to analyse the historic performance of their investment strategies, the BITA Plus software provides sophisticated "back-testing." It enables them to run historic simulations of buying and re-balancing the portfolio based on different risk and investment scenarios until they have developed an optimum strategy to meet the particular investment objectives.
BITA Plus' powerful and proven optimiser is particularly useful for trading clients operating on the sell-side. Development and implementation of trading strategies in real-time is essential to maximise the opportunities presented and BITA Plus is well placed to help traders do this.