Portfolio Risk Services

RBS (Luxembourg) S.A. is authorised by the Commission de Surveillance du
Secteur Financier in Luxembourg to conduct collective portfolio management.

Why risk monitoring?

UCITS III, together with other industry developments, has added additional risk monitoring requirements for the management of sophisticated funds using financial derivatives.

These all put severe pressure on the funds industry to employ the right tools, systems, technology and highly qualified people.

The implications

To manage these risks, firms often have to utilise a range of software or other services from different providers – with clear cost implications in terms of infrastructure support.

The cost of complying with regulatory and investor risk management expectations can be significant. However, you can outsource all this to our expert team Portfolio Risk Services (PRS).

A single solution

PRS offers a complete risk management solution for funds operating under multiple product regimes (UCITS III, hedge funds, pension funds, etc.) and for multiple jurisdictions.

We have developed a strong understanding of the regulatory requirements of each of the jurisdictions we cover, helping us to adapt our services to comply fully with these requirements.

In other words, we understand, interpret and construct the robust and effective risk management processes your business is looking for.

Risk monitoring in action

Our system automatically captures files from your fund administrators. It then enriches them with the necessary data associated with a large coverage of financial instruments, including over-the-counter derivatives.

We help you identify the risk factors to which each of your portfolios are subject. The fund’s risk profile will determine the choice of the risk monitoring approach.

We then agree to reporting requirements, typically including:

• Daily risk reporting for sophisticated funds
• Monthly MIS reporting
• Quarterly UCITS board of directors reporting.

Our risk engine also gives us great flexibility in generating stress tests. Stress testing is a useful method of determining how a portfolio will fare during a period of financial crisis. Automated daily back-testing is performed to verify the accuracy of the model and to ensure the system has appropriate parameters.

Working for you

This customised service addresses your requirements through a single solution, delivering cost benefits through our economies of scale.

Working with your team, we define and agree to the relevant risk indicators to be applied, together with risk reporting, tailored for each recipient. These can include the main board, risk department, compliance department, portfolio managers and marketing department.