F&C Asset Management Adopts SunGard's APT Commodities Model
London – 27th May, 2010 – F&C Asset Management, a global asset manager with €141 billion in assets under management (AUM), has extended its use of SunGard's APT by implementing an extension to its suite of multi-asset class, multi-factor risk models that helps enhance and expand the treatment of commodities. F&C will be using the model as a tool to help its customers understand the risk and reward benefits of investing in commodities. SunGard’s APT is a leading solution for risk-based investment management decisions.
In its recent poll of more than 300 institutional investors, Barclays Capital reported that nearly 60% of respondents indicated they had increased their commodities exposure in the last 12 months, and 63% indicated they would increase their exposure over the next 3 years. As investing in commodities increases, the introduction of APT’s commodities multi-factor risk model is timely in helping customers manage their risk in a multi-asset class environment.
APT provides a suite of multi-asset risk models that are used by risk and portfolio managers as part of a risk-based investment management decision process. The solution was enhanced to improve the explanatory capabilities for investment managers interested in analyzing their commodity exposure. Using APT, F&C can now take advantage of measuring and attributing their portfolio commodity risk according to a wide range of commodities-based risk factors, as well as define commodities-based stress tests. F&C users will also have the ability to explore the impact of shocks to commodities price factors. For example, they can view the impact of scenarios, which examine how the markets perform when the correlation of commodities to other asset classes increases. Further functionality also allows users to investigate the impact of varying their allocation to commodities on their risk budget.
“Customers are demanding increased access to commodities as they see greater potential for returns, as well as the benefit of their low correlation with traditional asset classes. APT and the new commodities extension helps to provide us with an effective risk management process to manage this within a multi-asset class framework,” commented Lef Sigalos, head of investment risk at F&C Asset Management.
Ettie Takacs, chief operating officer of SunGard's APT business unit, said, “The appetite for investing in commodities has increased over the last 12 months. APT has responded to this demand by delivering a commodities model that completes the process by helping managers understand risk and reward returns, and therefore control their exposure to commodities. F&C is one of the many customers to benefit from this development.”
About SunGard’s APT
SunGard's APT provides investment technology for a broad range of asset classes, countries and regions including data and software for understanding market risk, credit risk, liquidity risk and for portfolio construction and performance analysis. APT provides investors with statistical market risk models, performance and risk analytics and portfolio optimization and construction tools. APT's customers include institutional and retail asset managers, pension funds, private wealth managers, hedge funds, broker/dealers, prime brokers and proprietary traders. www.sungard.com/apt/learnmore
SunGard is one of the world's leading software and technology services companies. SunGard has more than 20,000 employees and serves 25,000 customers in 70 countries. SunGard provides software and processing solutions for financial services, higher education and the public sector. SunGard also provides disaster recovery services, managed IT services, information availability consulting services and business continuity management software. With annual revenue exceeding $5 billion, SunGard is ranked 380 on the Fortune 500 and is the largest privately held business software and IT services company. For more information, please visit SunGard at www.sungard.com.
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