Developed over the last 18 months with major life companies, including Aegon Scottish Equitable, the service evaluates fund links for portfolio bonds.
Acuity says the Probity system is set to become the industry standard for investment governance.
It is designed primarily for specialist offshore and international funds and structured assets which it says are increasingly popular with offshore bond holders.
Life company subscribers to Probity obtain evaluations for funds that they are requested to hold within their portfolio bonds.
As the system holds individual risk profiles for fund evaluation online, Acuity says this can be calibrated immediately against the expert fund assessment data also held on the system.
Acuity expects around 3,000 funds to be listed on the system by the end of 2008.
Probity and Acuity Consultants director Bryan Low says: “Probity has been developed to meet the operational needs of the fast growing offshore portfolio bonds industry to assess and track thousands of increasingly complex fund links. For open architecture products such as offshore bonds, Probity will set a new industry standard for the governance aspects of holding funds within a bond, perhaps now the weakest aspect of life company risk management.”
Aegon Scottish Equitable International technical manager Margaret Jago says: “The arrival of the Probity system addresses a very real issue for life companies with portfolio bonds. The system is thorough, objective and consistent and I foresee it becoming an industry standard service for the investment governance of offshore portfolio bonds, a product area that Aegon Scottish Equitable International sees as integral to its future business growth.”