Charles River Development, a unit of asset manager State Street, has decided to combine MSCI Analytics capabilities with its investment management solution (Charles River IMS).
The collaboration will enable Charles River’s clients to leverage MSCI’s portfolio and risk analytics, for numerous asset class factor modelling, statistical analysis (VaR), stress-testing, as well as optimisation.
On the other hand, MSCI Analytics clients will be able to use Charles River IMS for portfolio and data modelling requirements.
The integration with Charles River technology is said to enable MSCI Analytics to empower asset managers to produce more appropriate risk forecasts, build stronger portfolios, and develop smart beta along with risk parity products.
As a result, the asset owners will be able to carry out in-depth equity, fixed income, and alternative asset class portfolio construction and attribution, aimed at improving visibility into their asset allocation decisions, the companies noted.
Charles River CEO John Plansky said: “Adding new and differentiated analytical capabilities to the Charles River platform will help clients adapt to changing market conditions, investor preferences and regulatory mandates.
“Establishing relationships with leading analytics providers, such as MSCI, offers investment managers the greatest choice of portfolio, risk and attribution capabilities on a single platform.”
MSCI head of analytics Jorge Mina added: “The ability to seamlessly access MSCI’s entire analytics suite directly from the Charles River platform streamlines the development and deployment of new investment vehicles and strategies across asset classes.
“It will also simplify workflows and improve communication, operational efficiency, and collaboration between the front and middle offices across the entire investment process.”