Cutwater Asset Management, one of the world’s largest fixed-income investment managers, and Calypso Technology Inc., a global application software provider of an integrated trading, risk and processing platform to financial institutions and corporate treasuries, today announced a partnership to build a unique asset / liability management (ALM) portfolio-construction solution.
The decision to develop a totally new platform design was made in response to the chaotic financial market conditions experienced in 2008 and 2009, especially those connected to funding risk and sharp volatility of returns. The result will be the creation of a strategic asset allocation and portfolio construction application designed to provide optimal trading and portfolio solutions while increasing risk awareness.
“This new application is yet another innovation from Cutwater,” said Cliff Corso, ceo of Cutwater Asset Management. "Our goal for all of our clients is to minimize risk and volatility while meeting their investment objectives – we enter into this exciting partnership with the Calypso team as part of our ongoing dedication to performance and client service.”
As part of this new platform, Calypso Technology will combine Cutwater’s forward-looking capital risk framework, the Risk Analysis Manager (“RAM”), with Calypso’s evolutionary optimization platform, Galapagos. This solution will provide a multi-faceted risk budgeting, asset allocation and scenario management platform enabling Cutwater clients to explore a wide range of optimal investment strategies. Integrating Cutwater’s risk framework into the Galapagos environment will bring a unique and innovative offering that will allow clients to model a wide range of investment objectives, funding specifications and constraints while considering forecasts over an extended time horizon.
Charles Marston, chairman and ceo of Calypso said, “Through partnering with our customers, we continue to bring innovation to new levels. We are very privileged and excited to be able to work with Cutwater Asset Management to deliver a groundbreaking portfolio solutions tool based on the Galapagos technology platform. We believe this initiative will create significant value to both parties. It shows our commitment to the buy-side, where we see enormous growth potential.”
