Northern Trust Adds Data to Risk Monitor

September 24, 2009 ( - Northern Trust has enhanced its online risk and performance tools for investment manager and institutional investor clients with new tools to deliver risk attribution and Value at Risk (VaR) information.

A news release said the new tools provide a 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.

The Risk Attribution model provides clients with a tool to observe the risk and return tradeoff as a result of investment decisions, the company said.

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.

“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 the announcement.