State Street Unwraps Liability Modeling Product

October 25, 2007 ( - State Street Corporation announced it has introduced a liability modeling product which allows customers to view their future liability cash flows as line items within a portfolio.

A State Street news release said the liability instrument can be set up as one distinct instrument or as a series of distinct instruments.

Customers have the flexibility of viewing their liability structure online, as well as using the risk application’s features such as stress testing, shocks and “what-if” analysis for the liability structure, alongside their invested assets.

Customers, such as pension funds, require the integration of liabilities derived by their actuaries into the risk-measurement systems to help them monitor asset allocation strategies which keep pace with movements in their liabilities, the announcement said.

The company also announced that, through an agreement with Institutional Shareholder Services (ISS), State Street can monitor, detect, and deliver information in support of highly sensitive restrictions.

State Street compliance specialists now can use a compliance application to test investment criteria, including alcohol, animal welfare, gambling, emissions, chemical and oil spills, among other categories. The customer compliance results will be delivered via the compliance Web site, .

State Street also said it is expanding its net asset valuation (NAV) distribution capabilities for mutual fund customers interested in outsourcing more of their distribution related activities.