The Bank's pre-KIID synthetic risk and reward indicator (SRRI) simulation offer enables asset managers to assess their SRRI across their fund range, ensuring that the simulation is UCITS IV-compliant as the legislation comes into force in July 2011.
Commenting on the launch, Margaret Harwood-Jones, head of asset manager clients at BNP Paribas Securities Services said: “UCITS IV is a transforming event for the asset management industry. With our pre-KIID SRRI simulation pack, as well as the previously announced KIID-compliant reporting pack we are delighted to assist our clients as they gear up for this significant change. This is the latest development in our on-going programme to provide the services our clients need to undergo the UCITS IV transition smoothly.”
About Synthetic Risk and Reward Indicator (SRRI)
Under UCITS IV legislation, asset managers are obliged to present their risk and reward disclosure via a synthetic risk and reward indicator (SRRI). An SRRI is a number between 1 and 7, where 1 will indicate low risk/low reward investment and 7 will indicate that the investment carries a high level of risk with an equally high level of potential return.
The calculation of the SRRI risk figure depends on the type of fund and available performance history, but is primarily based on historical volatility (normally 5 years, if data is available).
About BNP Paribas Securities Services
BNP Paribas Securities Services is a wholly-owned subsidiary of the BNP Paribas Group, delivering flexibility and commitment, backed by the strength of a leading universal bank.
Operating across the investment cycle, we provide post-trade administration solutions to buy-side and sell-side financial institutions and issuers. The Bank has a local presence across 32 countries and global coverage of over 100 markets, offering a one-stop shop for all asset classes, both onshore and offshore, across the globe.
With USD 5453 billion assets under custody, USD 920 billion assets under administration and over 6,000 funds administered*, BNP Paribas Securities Services is Europe's leading securities services provider and number 5 worldwide.
* as at 30 June 2010
About BNP Paribas
BNP Paribas (www.bnpparibas.com) is one of the six strongest banks in the world* and the largest bank in the eurozone by deposits. With a presence in more than 80 countries and more than 200,000 employees, including 160,000 in Europe, BNP Paribas is a leading European provider of financial services on a worldwide scale. It ranks highly in its three core activities: Retail Banking, Investment Solutions and Corporate & Investment Banking. In Retail Banking, the Group has four domestic markets: Belgium, France, Italy and Luxembourg. BNP Paribas is rolling out its integrated model across the Europe-Mediterranean zone and boasts a large network in the United States. BNP Paribas Personal Finance is the leader in consumer lending in Europe. In its Corporate & Investment Banking and Investment Solutions activities, BNP Paribas also enjoys top positions in Europe and solid and fast-growing businesses in Asia.
* Rated AA by Standard & Poor's i.e. 3rd rating level on a scale of 22.