BITA Plus Consultants, a provider of risk management and portfolio-optimization software, has released its BITA Complete risk analysis and reporting service as an outsourced risk option for fund managers. The service will provide fund managers with detailed reporting on risk and performance attribution via the Internet without having to install any on-site technology.
The BITA Complete service is aimed at smaller fund-management firms that don't have the time, expertise or money to run their own systems in-house for risk and performance attribution. In addition, Simon Tizard, commercial director at BITA Plus Consultants, says that larger fund managers that already have in-house risk systems may also use the service as a backup or to corroborate the risk figures they generate internally so as not be dependent on a single set of risk models or optimizations. "Companies may have in-house risk systems but really want to run a sort of health check against their own figures," he says.
The fund managers will send portfolio data electronically to BITA Plus where it is processed using BITA Plus' risk models and risk-management systems. The client will work directly with BITA Plus to identify the specific risk models and benchmarks they would like their portfolios to be analyzed against.
"For example, we would typically produce an Excel workbook with the various sets of information and reports the client wants," says Tizard. More specifically, the analysis can be provided at the portfolio, market, sector and asset level for a complete view of the risk sources. In addition to being reported in Excel, BITA Plus will also deliver the reports in other formats that clients require.
"It's a very convenient way of basically outsourcing the risk reporting for users that need to know information about the risk that's attached to their portfolios," adds Tizard. BITA Complete reports can be received within 24 hours of transmitting the information and are priced according to the client's needs, such as how many risk models the client is using and how often the reports are run.
The BITA Complete service was started for a "well known U.K. fund manager," says Tizard but is now being made available to a broader group. "I thought if we're doing this for them then surely other firms would be interested as well, so we've formalized the service," he adds. While Tizard expects the smaller fund managers to use the service on a monthly basis, he says that other organizations with in-house systems may look to BITA Complete for reports on a quarterly basis or even less frequently.