UK – Information group Reuters has teamed up with US-based Barra to provide risk-management tools to asset managers.
Reuters has formed an “exclusive alliance” to integrate Barra’s buy-side risk analytics into its 3000 Xtra product aimed at the institutional market.
Jane Platt, Reuters’ president of services for asset managers, said the aim is to bring risk management into the “front office” at portfolio managers.
Platt added there was considerable “customer pull” from pension fund trustees and pension fund managers for a product which made information on portfolio risk easier to access. “It’s about transparency and accountability,” she said.
Platt declined to reveal the financial terms of the transaction with Barra, adding that the two partners are still working on a fee structure.
Reuters’ asset management services arm generates annual revenues of around 700 million pounds (978 million euros), Platt said. Platt, a former chief operating officer at Barclays Global Investors, added that Reuters has a three-pronged strategy for the asset management industry that focuses on content, trading and “tools and analytics”.
Separately, Reuters has been named an associate member of RIXML.org, a group which aims to develop an open standard for investment research.