Not since 1989 – when exchange controls were abolished – has there been such a drastic affect on how pension funds allocate their assets. Many financial managers, pressurized by these real-world forces, are looking carefully at EM4 as a tool that will enhance the functionality of their IT systems in the EMU.

Among Irish pension fund managers, the consensus appears to be that the level of Irish equity investment in a typical Irish pension fund will fall from a current level of about 30 per cent to below 20 per cent. The efficient triangulation method within EM4 will help fund managers to quickly and accurately evaluate Euro holdings against Irish equities. Before the software appeared on the market, fund managers used a traditional method of evaluation. However, during the year ahead, managers will be easily compared across country borders.

EM4 allows managers running an AS/400 system to exponentially expand their investment environments. In this new environment, using triangulation methods within EM4, the performance of an Irish manager can be placed side-by-side that of a French manager for easy comparison. After EMU takes effect, fund managers will restructure their domestic holdings and the resulting portfolios will differ significantly from those of the mid-90s. Across the EU, fund managers looking to broaden their portfolios will look to other countries. Mid-range systems running with EM4 will be able to quickly and accurately access share prices and fund values.

Products © Case Studies