StatPro Revolution Introduces Australian APRA Standard Risk Measure Computation Solution
14 Jun, 2015, 22:00 BST
SYDNEY, June 15, 2015 /PRNewswire/ --
StatPro Group plc (AIM: SOG), the AIM listed provider of cloud-based portfolio analysis for the asset management industry, today announced that it has introduced a pioneering solution to compute Standard Risk Measure (SRM), a standard method used by Australian superannuation funds to describe investment risk.
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The Australian superannuation (pension) industry has experienced a high growth rate in assets, totaling $2.05 trillion at the end of March 2015, an increase of 14.3% over a one-year period[1]. Australia is the world's fourth largest pension market[2]and provides the country with an enormous pool of investible funds to generate wealth for an ageing population. Employers are mandated by law to pay 'superannuation guarantee' contribution amounts to a designated fund for their employees at 9.5% of their wages. This rate is set to progressively go up and reach 12% by 2025[3].
The Standard Risk Measure (SRM) provides superannuation fund members with a descriptor to assist in comparing investment options both within and across funds based on the likely number of negative annual returns over the next 20 years. StatPro's innovative solution will help asset managers and pension funds meet the Australian Prudential Regulation Authority (APRA) requirement and is fully compatible with the guidelines laid down by the Financial Services Council (FSC) and Association of Superannuation Funds (ASFA).
StatPro Revolution computes the SRM value using a forward-looking methodology which can even be applied to funds yet to be traded. For traded funds we calculate the ex-ante volatility using the well-established historical simulation method. Our methodology provides stable risk results as we go beyond the old approach of return based on volatility and correlations as that approach often leads to unstable results.
The APRA SRM tool continues StatPro's rich legacy of introducing 'first-in-the-market' risk solutions, as we did previously with liquidity risk and an award-winning Risk Limits and Commitment Leverage Monitoring module that helps with UCITS and AIFMD compliance.
Says Dario Cintioli, Managing Director StatPro, 'We are excited about introducing this innovative solution. It has been developed after rigorous research and is based on cutting-edge technology to save you the time and cost involved in building an SRM tool. It is a turnkey solution that requires a minimum amount of input from the users and provides ready to use risk numbers right away.'
About StatPro
StatPro is a global provider of award winning portfolio analytics solutions for the investment community. The Group's cloud-based platform provides vital analysis of portfolio performance, attribution, risk and compliance. This multi asset-class analytics platform helps StatPro's clients increase assets under management, improve client service, meet tough regulations and reduce costs. The Group's integrated and global data coverage includes over 3.2 million securities such as equities, bonds, mutual funds, FX rates, futures, options, OTCs, sector classifications and much else besides. StatPro also covers most families of benchmarks including MSCI, FTSE, Russell, NASDAQ and the licence free Freedom Index.
StatPro has grown its recurring revenue from less than £1 million in 1999 to around £29 million at 31 December 2014. StatPro floated on the main market of the London Stock Exchange in May 2000 and transferred its listing to AIM in June 2003. The Group has operations in Europe, North America, South Africa, Asia and Australia, and approximately 500 clients in 37 countries around the world. Approximately 80% of recurring revenues are generated outside the UK.
Sources:
- ASFA - Superannuation Statistics
- Australian Trade Commission - Data Alert 20 February 2014
- Industry Super Funds
Enquiries:
SOURCE StatPro Group plc