Press Release
GE Asset Management Incorporated licenses the Principia System
Extending instrument coverage, ensuring FAS 133 compliance and facilitating risk management
Jersey City, New Jersey, September 30, 2003 -- Principia Partners LLC, a leading provider of full front-to-back office systems for global capital markets, today announced that GE Asset Management Incorporated (GEAM), the investment management arm of the General Electric Company, has licensed the Principia System to support its business.
Initially, GEAM intends to use the Principia System to process and account for derivatives that hedge assets in their extensive portfolio management business that serves both GE as well as institutional investors worldwide. GEAM plans to leverage the system’s functional straight-through-processing capabilities for managing trades from deal entry through to accounting. Users of the system will be able to structure and capture a broad range of instruments, perform risk analysis and hedge effectiveness testing, as well as deliver FAS 133 derivatives hedge accounting and reporting.
The Principia System will provide GEAM with rich core functionality and a fully customizable solution enabling dynamic portfolio and risk management of a wide range of assets, liabilities and derivatives ranging from simple to highly complex instruments.
Theresa Adams, one of Principia Partners’ founding partners, states: “We are proud to list GEAM as one of our clients. Undoubtedly, GEAM’s impressive track record as an investment manager and its renowned commitment to Six Sigma principles makes them a model client who can make valuable contributions to our product innovation and development.”
The Principia System is a comprehensive solution that provides robust valuation models. Adams continues: “Applying consistent analytical methodologies across different assets and hedge instruments within a firm’s portfolio is crucial for sound financial accounting and risk management. It is especially important in meeting FAS 133 requirements, where compliance may require retrospective and prospective hedge effectiveness testing. Data integrity and model consistency are essential in ensuring the accurate application of hedge accounting rules.”
About Principia Partners
Founded by a group of finance and technology professionals,
Principia Partners offers a fully integrated front to back office
solution for management of financial assets, liabilities and derivatives.
The Principia System covers fixed income (including ABS/MBS and GICs),
interest rate, foreign exchange, credit and equity indexed products.
The sub-ledger facilitates full compliance with both FAS 133 and
IAS 39 accounting regulations. Principia’s target market consists
of capital markets groups requiring sophisticated and flexible processing
capability without the desire to develop internal systems. For more
information about Principia, see www.principiapartners.com.
Principia Partners is headquartered at the Harborside Financial Center, Jersey City, New Jersey, USA with an office at 1 Cornhill in London, UK.
About GE Asset Management
GE Asset Management Incorporated (“GEAM”), a wholly owned
subsidiary of GE, is the investment management arm for the General
Electric Company and currently manages more than $184 billion for
institutional and individual investors worldwide across a variety
of asset classes and investment styles. This includes more than $117
billion in fixed income assets. GEAM’s core investment capabilities
include U.S. Equity, International Equity, Fixed Income, Real Estate
and Private Equity. GEAM is headquartered in Stamford, CT and has
offices in Tokyo, London, Los Angeles, Seattle and Montreal.
For press information contact:
Shamira Alidina
Write Image
271 Regent Street
London W1B 2BP
shamira@write-image.co.uk
Tel: + 44 (0) 20 7959 5450
Fax: + 44 (0) 20 7493 5499
Email: shamira@write-image.co.uk