Northern Trust (Nasdaq: NTRS) has enhanced its online risk and performance tools for investment manager and institutional investor clients across the globe with the inclusion of new tools to deliver risk attribution and Value at Risk (VaR) information.
The new tools provide an integrated view of historical risk and performance information for additional interpretation, comparison and perspective, including “ex-post,” or historical calculations, which will supplement Northern Trust’s existing “ex-ante,” or forecasted, capabilities.
“Clients are increasingly looking for detailed analysis of the sources of their portfolio risk, and these latest enhancements are part of Northern Trust’s continuing strategy to provide an integrated set of ex-post and ex-ante risk and performance capabilities,” said Ian Castledine, global head of Investment Risk product, for asset servicing, at Northern Trust, in a release.
The Risk Attribution model provides clients with a tool to observe the risk and return trade-off as a result of investment decisions. This release adds to Northern Trust’s market-leading performance attribution capabilities allowing detailed analysis of the tracking error, information ratio and standard deviation in a form consistent with return attribution.
The ex-post VaR capability calculates reports on historical risk measures using a wide range of confidence levels, enabling clients to focus on the tails of the portfolio’s return distribution.
Northern Trust has provided risk and performance services for over thirty years. Capabilities delivered through the Investment Risk and Analytical Services group include risk monitoring, performance evaluation and compliance services.