PerTrac, a source of analytics reporting and communications software, has released RiskPlus 2.0, a portfolio risk management solution designed to help portfolio managers, risk analysts and chief investment officers personalize factor models and stress tests so that risks caused by market volatility are better assessed.
PerTrac reportedly partnered with FinAnalytica, a provider of real-world risk and portfolio construction solutions, to deliver RiskPlus to investors seeking an affordable and user-friendly way to conduct in-depth risk assessment of their portfolios.
The solution also lets users take advantage of statistical methods from FinAnalytica in a cost-effective manner.
The new version of RiskPlus, according to PerTrac, is tweaked to help present day investors easily model and test their predictions of a volatile market and better understand the consequences of different asset allocation strategies.
A client of RiskPlus acknowledged that the solution allowed them to identify risks in their portfolio and be smarter about the funds they invest in and the strategies they employ. Features like fat-tailed statistics and risk budgeting enabled them to differentiate between potential and risk and learn more about their contributing funds. The new version supposedly enhanced their capability to tailor analysis to the most important factors and scenarios that could affect their portfolio.
“Our aim is to provide investors with easy-to-use, cost-effective risk management solutions focused on a more accurate view of both tail risk and tail return. RiskPlus demonstrates a client-driven evolution in the key areas where CROs and CIOs specifically want to leverage the platform for anticipating their future risk, evaluating opportunities that increase risk-adjusted returns,” said David Merrill, CEO at FinAnalytica.
Benefits investors will be able to enjoy from RiskPlus 2.0 include the ability to create ‘custom factor models’ that are closely aligned with investment strategy; defining stress test scenarios based on specific factors; reading into past stress scenarios like the Black Monday, the Asian Crisis or the Crash of 2008 and building their own stress test periods based on these events.
The platform also includes the Expected Tail Return (ETR) feature, when merged with Expected Tail Loss (ETL), providing a potent tool to analyze portfolio changes.
Edited by Braden Becker