Risk solutions provider Algorithmics has announced that British Telecommunications Pensions Scheme Management (BTPSM) has gone live with Algorithmics' Algo Risk Service for risk management purposes across its major asset classes and liabilities.

BTPSM is a division of Hermes Fund Managers Limited. It manages the U.K.’s largest private sector pension scheme.

According to a press release, BTPSM is leveraging Algo Risk Service, hosted by Algorithmics, to manage its overall scheme risk, develop appropriate overlay strategies, understand the performance of external asset managers, as well as monitor its investments at various levels.

The Algo Risk Service for Pension Funds is a hosted risk management, portfolio analytics and decision support tool. It provides Pension Funds a Web-based integrated risk management solution for each stage of the Pension Plan investing and risk management cycle, from risk budgeting and investment strategy through to risk reporting.

Supporting better informed investment decisions and providing greater supervision for risk and related performance, the Algo Risk Service offers high levels of customization and complicated asset modeling that covers the entire investment universe for the most complex plans including multi-scheme, country or manager.

In November 2010, Algorithmics enhanced the Algo Risk Service with new customization capabilities. Algorithmics had added eight new service extensions to the service.

Unlike a standardized ASP model, Algorithmics’ Algo Risk Service is a managed service that has a dedicated client environment. It provides a packaged pension solution that can be customized in a time- and cost-effective manner using a proven, web-based platform.

The extended Algo Risk Service features optional service extensions that not only complement and augment the Service, but also provides clients the flexibility to customize the service even further as well as access to a range of advanced data management, optimization, analysis and reporting tools, managed and supported by Algorithmics’ financial engineers and risk practitioners, in an environment uniquely customized to each clients specific business requirements.

Wyn Francis, head of investment risk for BTPSM, said in a statement, “Algo Risk Service has enabled us to be more formal about how we assess and manage risk. Without a doubt, the service has provided a far more effective risk management framework for the scheme, challenging the way we look at risk across our portfolio.”

Francis added, “When you’re using different systems or approaches, it invariably means that risk is being calculated on an inconsistent basis. None of the approaches we were using consistently took into account the correlation between assets and liabilities when it came to risk exposure.”

Apart from strengthening its approach to risk management, BTPSM is leveraging Algo Risk Service to better manage the BT (News - Alert) Pension Scheme and its diverse set of assets and liabilities.

Andrew Aziz, executive vice president of Algorithmics, Buy-Side Solutions, said in a statement, “At a time when pension schemes funding ratios are under increasing pressure and experiencing greater volatility, we are delighted to be working in partnership with BTPSM to help develop the best industry risk management practices that Wyn and his team are establishing. This is setting new standards for the industry to aspire to.”

Want to learn more about the latest in communications & technology? Then be sure to attend ITEXPO East 2011, taking place Feb 2-4, 2011, in Miami. ITEXPO (News - Alert) offers an educational program to help corporate decision makers select the right IP-based voice, video, fax and unified communications solutions to improve their operations. It's also where service providers learn how to profitably roll out the services their subscribers are clamoring for – and where resellers can learn about new growth opportunities. To register, click here.