Value-at-Risk is rapidly gaining acceptance in the Asset Management Industry as the standard framework to measure and report risk. FEA’s VaRworks provides a framework to identify, quantify, and manage investment risks. The "drill-down" capabilities of the product offer crucial insights in determining the main sources of risk in the portfolio and to identify the components of the portfolio that act as a natural hedge. Regulators all over the world are encouraging fund managers to use VaR to determine derivative limits. This will reinforce the trend toward making VaR a standard for measuring and managing portfolio risk. Many of our clients choose FEA because of our tradition of innovation. We strive to ensure that our products evolve to keep pace with important advances in methodology, such as the introduction of Extreme Value Theory and Stress Tests to complement traditional VaR methodologies. One of our first VaRworks clients in the asset management industry was a large State Investment Board, responsible for investing pension contributions of the state retirement system. Their goal was to provide competitive returns that ensure coverage of the projected costs of the system, while minimizing the risks associated with investment. Risk management for this Investment Board is a structure implemented at many levels. These include (among other things) asset allocation decisions, portfolio policy implementation, and the monitoring of various risk exposures. As one of many tools available to the risk management department, Value-at-Risk has been especially appealing in several respects: it provides a common language for evaluating risk across asset classes it allows the user to get a sense of the level of volatility of the market for many markets at a glance it facilitates the tracking of changes in the volatility of a portfolio compared to the "market" or index of that portfolio. These features of VaR provide a sense of the changing levels of risk in the portfolio exclusive of the market. Value-at-Risk also allows the aggregation of portfolios to examine potential hedging effects among them. Other breakdowns, such as VaR due to specific currency exposures or certain asset classes, are also possible. Another FEA client, a large hedge Fund, also successfully implemented FEA VaR products, VaRworks and MakeVC into their Risk Management program. The client's mission is to build a successful, entrepreneurial money management firm, whose niche is developing, implementing, and managing alternative investment strategies across a broad spectrum of asset classes, including foreign exchange, global fixed income, global equities, and commodities. FEA VaRworks is regularly helping them to achieve their goals. In yet another example, an Asset Management Firm on the West Coast uses VaRworks and MakeVC to manage the risk of a Global Equity Hedge Fund. VaRworks allows them to perform the risk analysis at the individual equity level and provides them with the ability to introduce options on equities and stock indices. Using their own data warehouse, they use FEA’s volatility and correlation generation tool, MakeVC, to create custom datasets including individual equities in the analysis. In addition to VaRworks and MakeVC, other FEA products that may be of interest to asset managers are: @EQUITY @INTEREST @GLOBAL Click on a product name for a detailed description and a list of features. We would be happy to provide a personal demonstration of any product, or feel free to contact us to talk with one of our staff directly.