As an allocator, you know how difficult it is to evaluate risk in your portfolio, especially when it includes alternative investments. Hunting down all the current holdings and historical data from multiple sources to complete a position-based analysis is time-consuming, if not impossible, and imminent business-impacting decisions can’t wait. Comprehensive risk analysis tools can also be cumbersome and expensive with some not taking into account non-normal markets.
RiskPlus, in partnership with FinAnalytica, is an award-winning and innovative returns-based portfolio risk management solution designed solely for allocators who need to analyze risk in even the most opaque asset classes. Available as an add-on module to eVestment Quantum Analytics, RiskPlus allows allocators to customize their risk analysis using tailor-made factor models, risk budgeting and user-defined stress tests to create a comprehensive, easy-to-interpret report that breaks down your portfolio's risk and return components. With RiskPlus, investors receive an affordable and user-friendly way to conduct in-depth risk assessment of their portfolios in normal and non-normal markets.
- Created in partnership with FinAnalytica, the leading provider of real-world risk and portfolio construction solutions
- Built with models backed by years of academic research
- Won HedgeWeek award for “Best Risk Management Software” in 2011 and 2012
- Employ returns-based analysis using your existing fund allocations and monthly return streams
- Save time and effort while still employing a systematic risk analysis process
Normal and Non-Normal Methodology
- Use fat-tailed risk frameworks, which exhibit non-normal distributions with large degrees of skew and excess kurtosis, hidden from normal distributions
- Assess which model is best-suited for your portfolio and apply the correct distribution to achieve the most accurate risk calculation
Pre-Defined and Custom Factor Models, Stress Tests and Scenario Tests
- Choose from 11 real-world factor models to assess your portfolio under past market conditions
- Have the flexibility to customize risk analysis using custom factor models and user-defined stress or shock tests
- Understand how your portfolio can be expected to perform if certain crisis scenarios were to recur in the future or under specific market circumstances
- View which funds contribute most to portfolio risk and which are the best risk diversifiers
- Understand which funds are underperforming relative to the tail risk they are contributing to the portfolio and which funds may deserve increased allocations
- Understand the impact on the relationship between the funds or factors.
- See how classical monthly correlation values between funds or factors are compared to robust correlation values that eliminate extreme event outliers