Convergence of risk management and portfolio construction: -- why aren't portfolio managers better leveraging the advances that have occurred in risk measurement for their portfolio construction purposes? asks, leading risk management provider.

Toronto/London - April 9, 2008 -

At a conference in London today, Dr Andrew Aziz, Executive Vice President of Risk Solutions, Algorithmics, will be discussing the benefits of better integrating the functions of risk management and portfolio construction within a fund's overall investment process

Speaking at Algorithmics' Buy Side Conference - The convergence of Risk Management and Portfolio Construction - A buy side Revolution, Dr Andrew Aziz said:

"Fund managers are now using sophisticated techniques to measure and manage their risk profile. Our question for them is, why aren't they using the same level of sophistication within their portfolio optimization and portfolio replication tools?

"For multi-asset class, multi-currency portfolios, best practice risk management has long since evolved from a reliance on black-box parametric models to scenario-based simulation approaches to better capture optimality, stress events and distributional effects such as 'fat tails'. In contrast, standard portfolio construction naïve assumptions implied by normal markets."

For more information about Algorithmics' Algo Risk Service, please visit: http://www.algorithmics.com/EN/solutions/portfolioriskanalytics/

For further information please contact:
Heather Smith
Senior Communications Manager, Algorithmics (UK) Ltd
Direct line +44 (0) 20 7392 5820
Mobile +44 (0) 7515 974 223
E-mail Heather.smith@algorithmics.com

Notes to Editors:

Algorithmics is the world's leading provider of enterprise risk solutions. Financial organizations from around the world use Algorithmics' software, analytics and advisory services to help them make risk-aware business decisions, maximize shareholder value, and meet regulatory requirements. Supported by a global team of risk experts based in all major financial centers, Algorithmics offers proven, award-winning solutions for market, credit and operational risk, as well as collateral and capital management. Algorithmics is a member of the Fitch Group.

Algo Risk Service provides a fully integrated, flexible platform for assessing future risk across an organization in a single, consistent, rigorous environment covering all investment strategies across all risk factors and asset classes. It covers both traditional assets and sophisticated, structured products. Offered as a managed service, clients access the solution via a web browser. All the Algo Risk Service software and computing power is hosted by Algorithmics, allowing the cost of ownership to be dramatically reduced.

Fitch Group is the parent company of Fitch Ratings, a global ratings agency committed to providing the world's markets with independent, timely and prospective credit opinions. With 49 offices worldwide, Fitch Ratings' global expertise spans across capital markets in over 150 countries. Fitch Ratings is headquartered in New York and London.

The Fitch Group also includes Fitch Solutions, a distribution channel for Fitch Ratings products and a provider of data, analytics and related services; and Algorithmics, the world's leading provider of enterprise risk solutions.

The Fitch Group is a majority-owned subsidiary of Fimalac, S.A., headquartered in Paris, France. For additional information, please visit www.fitchratings.com, www.algorithmics.com and www.fimalac.com

© 2008 Algorithmics Software LLC. All rights reserved. ALGO, ALGORITHMICS, Ai & design, ALGORITHMICS & Ai & design, KNOW YOUR RISK, MARK-TO-FUTURE, RISKWATCH, ALGO ALM, ALGO COLLATERAL, ALGO CREDIT ADMINISTRATOR, ALGO CREDIT DATA SERVICES, ALGO CREDIT ECONOMIC CAPITAL, ALGO CREDIT EXPOSURE, ALGO CREDIT LIMITS, ALGO CREDIT REGULATORY CAPITAL, ALGO CREDITVANTAGE, ALGO ETREASURY CREDIT, ALGO FIRST, ALGO MARKET ANALYTICS, ALGO OPDATA, ALGO OPVAR, ALGO RECONCILIATION, ALGO RISK, ALGO RISK SERVICE, and ALGO SUITE are trademarks of Algorithmics Trademarks LLC.

Press Contact

Heather Smith
Senior Communications Manager
Tel:  +44 (0)20 7392 5820
Mobile: +44 (0) 7515 974 223
Fax: +44 (0)20 7395 5701
email: Heather.Smith@algorithmics.com