The measurement of portfolio risk against client objectives is increasingly considered essential and it is now common for mandates to include performance targets, with explicit risk limits. Plan sponsors and consultants are demanding more frequent and detailed analysis. As recent highly publicised cases have demonstrated, failure to monitor risk and performance adequately can result in severe reputational damage, and at worst, in litigation.
In recent years, most asset managers have invested to improve their ability to report and analyse performance both to internal and external clients. There is a demand for continual improvements to the depth, frequency and timeliness of reporting. These demands appear to be increasing as the availability of resources to meet them is becoming more scarce.
In response to this demand, Citisoft has launched a Risk and Performance Service, which brings together its existing capabilities developed over 16 years of working with investment managers in the performance measurement arena. The Risk and Performance Service aims to assist clients in delivering cost-effective solutions required for analysing, presenting and managing risk and performance.
For many firms, performance and risk measurement has come to represent a major investment in people and systems. In the current difficult market conditions, Citisoft will provide expertise in maximising the return on that investment. Citisoft believes that the measurement of risk, investment performance and the performance of research recommendations can be brought together to improve the investment process and ensure the optimal use of limited resources.
Cosmo Wisniewski, Director of Consultancy Services, Citisoft plc, comments: "In the present conditions, asset managers need to maximise the benefits from their considerable investment in people and technology. As the measurement of risk and performance becomes ever more vital, Citisoft's Risk and Performance Service aims to assist them in achieving this."
Jonathan Clark, Director, Citisoft plc, adds: "Over the past 16 years, Citisoft has gained extensive experience of the practical difficulties that exist in implementing organisational and system changes across all areas of investment management. Citisoft's Risk and Performance Service recognises that the provision of regular and reliable measurement is highly dependent on every stage of the investment process, and broad and in-depth knowledge is an essential pre-requisite for the successful implementation of change."s