The problem

To strengthen the governance of their fund investment process, this asset manager wanted to provide better transparency into what was driving the performance and risk of their funds to clients. They found that the traditional risk tools used were unable to provide an intuitive understanding of this across the entire client’s portfolio of funds.

The solution

By providing factor analysis at market and portfolio level, asset managers can provide clear and concise views of each funds’ exposure to various investment styles and what is driving an entire portfolio of a fund’s performance and risk. This gives the asset manager a view of whether they are unintentionally overweight in certain sectors or style.

Our use case

We use Style Analytics because we found that we were not able to gain the right insights into portfolios using various traditional risk tools. Through using Style Analytics we were able gain insights which are now used in our investment committee reports with the CIO and the portfolio management team. Global Head of Portfolio Analytics

Magnifying Glass

The result

Independently verified factor and style analysis at market and portfolio level. This information is used by the portfolio analytics team in regular meetings with both the CIO and clients. The portfolio management team can deliver enhanced reporting to validate skill when adhoc requests from clients are required. Further, the portfolio management team are better able to determine what is driving performance and risk at style/individual factor level.