Munich Ergo Asset Management GmbH

Powerful risk management used to calculate risk with unprecedented accuracy

Published on 22-Nov-2013

"We work within a liability-driven framework and manage assets against complicated benchmark portfolios with asymmetric and dynamic risk profiles. Furthermore, we run our group’s market risk model, which keeps on being developed further and further." - Peter Schenk, head of investment controlling

Customer:
Munich Ergo Asset Management GmbH

Industry:
Financial Markets

Deployment country:
Germany

Solution:
Algorithmics Solutions, BA - Business Analytics, BA - Risk Analytics, Smarter Planet

Overview

Based in Germany, Munich Ergo Asset Management GmbH (MEAG) is one of Europe’s leading asset management firms.

Business need:
To cope with uncertainty and volatility in the financial markets, Munich Ergo Asset Management GmbH (MEAG) needed a risk management solution that could facilitate a razor-sharp understanding of investment and institutional risk in near-real time.

Solution:
MEAG uses a powerful risk management solution to evaluate market risks with greater accuracy and make smarter investment decisions for itself and its customers. By simulating potential market events, the solution calculates the probabilities of certain outcomes and assesses their impact on asset classes and investment strategies.

Benefits:
The solution provides critical insights into market movements, helping MEAG project real risk figures more accurately in its management of EUR238 billion in assets and EUR2.2 billion in mutual funds for private investors.

Case Study

Based in Germany, Munich Ergo Asset Management GmbH (MEAG) is one of Europe’s leading asset management firms. The company maintains offices around the world, using its global presence to stay competitive with investments in securities, real estate and funds. Its size and independence from banks enable the firm to obtain high-quality information from international investment companies in exchange for low transaction fees.

The Opportunity
To cope with uncertainty and volatility in the financial markets, Munich Ergo Asset Management GmbH (MEAG) needed a risk management solution that could facilitate a razor-sharp understanding of investment and institutional risk in near-real time.

What Makes It Smarter
MEAG uses a powerful risk management solution to evaluate market risks with greater accuracy and make smarter investment decisions for itself and its customers. By simulating potential market events, the solution calculates the probabilities of certain outcomes and assesses their impact on asset classes and investment strategies.

Real Business Results
The solution provides critical insights into market movements, helping MEAG project real risk figures more accurately in its management of EUR238 billion in assets and EUR2.2 billion in mutual funds for private investors. This clearer view of the potential risks lets the firm manage its own assets more effectively and cater to its customers’ investment strategies and risk tolerance policies. By keeping liabilities in check throughout its six worldwide offices, MEAG maintains a healthier balance sheet and is more likely to survive unexpected fluctuations in the financial markets.

For more information
Please contact your IBM representative or IBM Business Partner.
Visit us at ibm.com/algorithmics.

To learn more about Munich Ergo Asset Management GmbH, visit
www.meag.com.

Products and services used

IBM products and services that were used in this case study.

Software:
Algorithmics Financial Markets Credit Risk

Operating system:
Linux

Service:
Software Services for Business Analytics

Legal Information

© Copyright IBM Corporation 2013 IBM Corporation Software Group Route 100 Somers, NY 10589 Produced in the United States of America November 2013 IBM, the IBM logo, ibm.com and Algorithmics are trademarks of International Business Machines Corp., registered in many jurisdictions worldwide. Other product and service names might be trademarks of IBM or other companies. A current list of IBM trademarks is available on the Web at “Copyright and trademark information” at www.ibm.com/legal/copytrade.shtml. This document is current as of the initial date of publication and may be changed by IBM at any time. The content in this document (including currency OR pricing references which exclude applicable taxes) is current as of the initial date of publication and may be changed by IBM at any time. Not all offerings are available in every country in which IBM operates. THE INFORMATION IN THIS DOCUMENT IS PROVIDED “AS IS” WITHOUT ANY WARRANTY, EXPRESS OR IMPLIED, INCLUDING WITHOUT ANY WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND ANY WARRANTY OR CONDITION OF NON-INFRINGEMENT. IBM products are warranted according to the terms and conditions of the agreements under which they are provided.