UK - Russell/Mellon CAPS has taken full ownership of Risk Reporting, its joint venture with Barra.
Risk Reporting is a UK-based bureau service that provides multi-factor risk analysis to pension funds. It was set up as a 50:50 joint venture between Barra and CAPS - later Russell/Mellon CAPS - in 1998.
The bureau runs pension fund portfolios through Barra’s TotalRisk system to identify the funds’ risk relative to their benchmark, peer groups and cash. The service is aimed at smaller pension funds that cannot afford to access TotalRisk directly.
Russell/Mellon CAPS will not disclose financial details of the acquisition. However, Barra’s annual accounts show that that Risk Reporting, together with other joint ventures, made losses in 1999 and 2000.
The Risk Reporting team of 15, based in Leeds, will transfer to the Russell Mellon CAPS offices in Leeds before the end of the year.
Last year Nick Kent, managing director of Risk Reporting, left to set up Portfolio Evaluation, a Harrogate-based company providing risk and return analysis of institutional portfolios.
Mick Brant, chief executive of Russell/Mellon CAPS and chairman of Risk Reporting, said that Risk Reporting would complement its main business of providing investment analysis.
"The key advantage of this move for clients will be reduced administration, since they will be dealing with just one source for all their requirements. Ultimately we are aiming to integrate reports and tailor them for clients’ scheme specific needs.”
He said that in future Risk Reporting will focus exclusively on pension funds and charities in Europe.
Meanwhile, Barra is looking for a new chief operating officer after Robert Honeycutt resigned at the end of September to pursue other interests. Honeycutt was COO from 1991 to 1999, and rejoined the company in 2001. Barra is using an executive search firm to find a replacement.
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