Performance and attribution analysis
Such a high-profile public fund as the NPRF needed watertight systems to monitor both the performance and risk profiles of the investment managers appointed.
For this, the NTMA looked to specialist providers in the market. On the performance side, performance analysis outfit StatPro picked up the mandate to provide its systems software to the NTMA.
Grahame Falconer, sales and marketing director at StatPro, comments on the win: “The NTMA started to look at performance measurement systems last year, I can tell you exactly the date because it was 11 September, and we presented along with a number of others.”
He explains that the StatPro system offers performance measurement and attribution systems at the stock level on a daily transaction basis and believes the depth of provision was a deciding factor in the firm’s appointment.
“This gives great accuracy in being able to take data from all of the NTMA’s fund managers and accurately measure their performance.
“Also, we are one of the fastest-growing companies in this area with over 130 clients, three of which are in Ireland, so there was a reference here, and we also have a number of other pension companies that are using the system. There are a lot of buy and hold systems out there that are not nearly as accurate for someone who wants really accurate performance measurement.
“We think ours is the foremost package available and we now have 70 clients using it worldwide.”
After opting for StatPro, the NTMA took delivery of the system in January. “It is now nearly fully installed and is just about ready to go live,”says Falconer.
He notes the importance of the NTMA win for the firm: “I think this win is very important for us in the area of pensions because it is our first pensions client in the UK and Ireland. Also, Deborah Reidy is well known in the industry as a member of the Investment Performance Council, and we look upon this as a major coup to be selected as a client to the NTMA.
“It’s not just about getting our name known though, it’s about getting institutions to think that they should be doing this kind of performance measurement.”