Jersey City, New Jersey, September 30, 2003 -- Principia Partners LLC, a leading provider of full front-to-back office systems for global capital markets, today announced that GE Asset Management Incorporated (GEAM), the
investment management arm of the General Electric Company, has licensed the Principia System to support its business.
Initially, GEAM intends to use the Principia System to process and account for derivatives that hedge assets in their extensive portfolio management business that serves both GE as well as institutional investors worldwide. GEAM plans to leverage the system's functional straight-through-processing capabilities for managing trades from deal entry through to accounting. Users of the system will be able to structure and capture a broad range of instruments, perform risk analysis and hedge effectiveness testing, as well as deliver FAS 133 derivatives hedge accounting and reporting.
The Principia System will provide GEAM with rich core functionality and a fully customizable solution enabling dynamic portfolio and risk management of a wide range of assets, liabilities and derivatives ranging from simple to highly complex instruments.
Theresa Adams, one of Principia Partners' founding partners, states: "We are proud to list GEAM as one of our clients. Undoubtedly, GEAM's impressive track record as an investment manager and its renowned commitment to Six Sigma principles makes them a model client who can make valuable contributions to our product innovation and development."
The Principia System is a comprehensive solution that provides robust valuation models. Adams continues: "Applying consistent analytical methodologies across different assets and hedge instruments within a firm's portfolio is crucial for sound financial accounting and risk management. It is especially important in meeting FAS 133 requirements, where compliance may require retrospective and prospective hedge effectiveness testing. Data integrity and model consistency are essential in ensuring the accurate application of hedge accounting rules."