DSTi wins IAG risk deal

Stan Beer
Friday, 02 December 2005 16:35

IT Industry - Deals

Investment management software vendor, DST International (DSTi) has signed a contract to integrate its investment management risk solution with the front office of IAG Asset Management, the asset management arm of insurance group IAG.

The enterprise-wide risk management solution  is designed for discretionary funds, hedge funds, super funds, mastertrusts, wraps and high value wealth portfolios across all asset classes.

The IAG Asset Management deal is DSTi’s second risk solution contract in Australia. Suncorp Investment Manager went live with the first implementation in August 2005.

The contract with IAG Asset Management reflects a growing need for comprehensive investment risk management techniques and solutions as more Australian fund managers recognise the commercial and operational benefits they can deliver, according to DST International CEO for Australia and New Zealand, Ian Mathieson. 

“Earlier this year we completed industry research (DSTi Risk in Funds Management Report 2005) and 96% of our survey participants identified that they expected demand to increase for quantitative risk measures over the next four years. A majority also thought that increased reporting of risk will be mandated by legislation, with 57% believing APRA is very likely (24%) or somewhat likely (33%) to force managers to adopt banking-style risk management practices by 2009.

“Issues identified included lack of data, systems and resources as the major obstacles in producing detailed risk measurement capabilities. We are pleased to see that with the second Australian fund manager seeking to resolve the challenge of investment risk management with our risk solution, there is a growing awareness that the adoption of increasingly sophisticated investment processes achieve better outcomes for the funds manager and investor,” Mr Mathieson said.