Under the deal, institutional and private wealth managers will be offered
Reuters market leading information and Barra risk analytics all within the
same system. The combined service enables fund managers to manage risk in
their portfolio from the same system they use to watch the markets, avoiding
the current time consuming need to request information from elsewhere in
"Risk management needs to be in the hands of the investment decision-maker,"
said Peter Keppler, Senior Analyst in Capital Markets at Financial Insights,
an IDC company. "By combining Reuters information with Barra's risk analytics into an integrated desktop, clients should be able to make faster, more informed investment decisions."
Highly volatile markets have led to increased demand for risk analysis among
both institutional and retail investors. The new, integrated service allows
portfolio managers to seamlessly test the level of risk versus return of
different investment strategies, execute trades across Reuters broker neutral network, and continuously monitor the risk and performance of the overall portfolio.
There are two parts to the strategic alliance: one focusing on the needs of
the institutional market and another for the high net worth advisory market.
For the institutional market, Reuters 3000 Xtra and Reuters BridgeStation
are the exclusive market data products integrated with BarraOne.
For the high net worth advisory market Barra risk analytics are integrated into Reuters Portfolio Management System and Reuters Intelligent Advisor, a new service scheduled for launch later this year, and are not available from a number of Reuters competitors.
Jane Platt, President of Services for Asset Managers, Reuters, said, " Working with Barra, the market standard for risk management on the buyside, we are integrating their tools and analytics with Reuters market leading information and trading capabilities. This integrated services takes the full suite of investment management tools to the front office. This combination of capabilities is unrivalled. "
"A careful balance of risk and return is now critical to every portfolio manager's decision-making process," said Kamal Duggirala, Chief Executive
Officer of Barra. "Our alliance with Reuters makes Barra's market leading
risk analytics accessible to a much larger base of investment professionals
The agreement builds on Reuters and Barra's existing relationship. Lipper-Barra Mutual Fund Risk Factors allows financial professionals to evaluate and analyse the risk profile of mutual funds against their peers. In addition, The Barra Risk Factor Analysis, compares the risk of individual securities with the broader market or sector, is currently available via Reuters 3000 Xtra and Reuters Bridge Station.