Etera Mutual Pension Insurance Company has managed its investment assets using Digia Financial Systems products for over 10 years. As the official requirements grow and Etera’s investment activities expand, the system has been diversified. Etera’s goal has been an information system which adapts to changing needs.
Having up-to-date information is the number one priority. There are also ever more diverse ways of examining and combining data. This line of work would be hard to imagine without a full, reliable information system.
Pension insurance company Etera needed a diversified and adaptable information system for managing its investment assets, which would meet the challenges of the operational environment.
Etera manages over five billion euros in investments. Over four billion worth are fixed interest and equite investments. Just as Etera has been making a clearer shift from index investments to active trading, stock market regulation has increased. In addition, new investment products continuously demand more from information systems.
To manage securities, Etera has used solutions from the Digia Financial Systems product family since the end of the 90’s. Before then, an inhouse system took care of debenture investment assets. With the arrival of equity investments and the euro, a more powerful, comprehensive system was needed.
The installed system is used to handle Etera’s investment asset back-office functions, from logging transactions to reporting and bookkeeping. Asset item values are monitored daily. Securities investments are divided into equity investments, derivatives, money market instruments and debentures.
Information required for bookkeeping goes straight to bookkeeping; account balancing has its own interface. Report drafting can be automated using Report Manager – reports can be chosen to meet official or in-house bookkeeping requirements.
In autumn 2011, the Bloomberg market information service was integrated into the package as an outsourced service. This provides closing prices of shares, valuation reports, key figures and risk evaluations, plus information on company developments such as stock, splits and share issues. As a result, information is much more up to date. Before, some data had to be fetched manually from multiple sources.
“New investment products are appearing all the time, especially for the derivatives markets. Growing risks requires more-active monitoring of the markets. Real time information is the markets’ alpha and omega. Information is continually being analysed and combined more flexibly. This line of work would be hard to imagine without a full, reliable information system”, explains Maarit Javanainen, who is in charge of managing Etera’s securities.
“I believe that automation will continue.”
“The stock markets are very lively. Naturally, at Digia we value being involved in developing systems that boost our customers’ business in a fast-moving environment”, affirms Tommi Flink, a director at Digia.