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From Sagar Chakraverty, Opalesque Asia:
Douglas McArthur, a great American military general, once said: “There is no security on this earth, only opportunity.” Indeed investors worldwide too believed this till 2008 struck. Now they demand greater transparency and better risk management measures from asset managers, and this has changed the marketplace psychology to a great extent.
SunGard, a multinational software company, addressed this new paradigm through its Advanced Portfolio Technologies (APT) division. APT, a specialist in statistical market risk models, risk analytics, and portfolio optimization, has published a white paper called ‘Increasing Transparency with Scenario Analysis –The Third Pillar of Risk Management’ (see here).
Emphasis on transparency
Lochiel Crafter, chief executive of American Risk and Insurance Association (ARIA), said one of the major lessons learnt from the global crisis was hedge funds’ lack of transparency, which arguably led to their downfall. Often not knowing the assets and positions taken by these funds, institutional investors were left out in the cold with little say to investment strategies du...................... To view our full article Click here
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