Asset managers, pension funds, sovereign wealth funds, insurers, and private wealth managers face the constant challenge of capturing risk premia across markets with a high degree of risk control in a systematic and efficient manner. The universe of Quantitative Investment Strategies (QIS) is rapidly expanding, and its increasing complexity requires superior granularity in portfolio risk monitoring and control.
As an independent platform, we bring transparency and intuitive risk analytics to one of the most complex and fragmented investment areas.
Our platform is designed to enhance the QIS investment workflow from data integration and investment signal selection to informed and unbiased portfolio allocation and risk management.
QIS investors can leverage our unique dataset of 5,000+ investible systematic strategies across 18 leading investment banks, representing an estimated USD 1 trillion AUM, to screen, compare, build, optimize, and risk monitor their portfolio.
Peer Grouping, Benchmarking & Strategy Selection
With more than 5 million curated data points updated daily on all asset classes, our extensive database streamlines data access. We provide information from 18 leading investment banks in a uniform format, with consistent classification across strategy implementations, to fully empower QIS investors to focus on identifying performance engines matching their specific needs.
We enable investors to compare strategies against our proprietary factor model, Premialab Pure Factors®, allowing them to choose between standard and idiosyncratic implementations of risk premia. We extract consensus risk across implementations, providing an anchor point to navigate between market offerings. By combining these enhanced analytics with our intelligent visualizations, QIS investors can now easily monitor style drift, attribute performance over time, assess implementation robustness, and test over-fitting in an independent and unbiased workflow.
Strategy selection is further enhanced with sophisticated data science techniques, such as tail clustering across implementations or causality estimation beyond correlation across strategies.
Portfolio Construction & Optimization
We understand the need for institutional investors to adapt more rapidly to market movements and target specific investment objectives on a consistent basis, whether this is achieved through a smart-beta or market-neutral QIS strategy.
We enable investors to perform portfolio construction with advanced allocation techniques across investments, optimize portfolio diversification, and distribute risk budget across strategies.
Since the start of the COVID-19 pandemic, QIS has been the chosen answer to the increasing demand for overlay solutions and tail risk hedging to mitigate portfolio short-term drawdown while maintaining overall performance. Our fully integrated solution provides a holistic approach, allowing for a blend of defensive strategies to achieve the outcomes our clients need now.
Transparency & Risk Management
Strategy and portfolio assessment requires full clarity on the source of performance and the risks embedded in its implementation.
By providing full transparency on QIS underlying constituents, our platform enables investors to look through instrument-level positions across strategies. This unrivalled granularity, homogenized and automatized across providers, streamlines the workflow for QIS investors.
Risk departments need to perform the same level of control on QIS investments as they would do for any direct investment.
Our bottom-up risk analysis solution enables QIS professionals to measure portfolio allocation robustness through historical and transitive stress tests under multiple scenarios and market shocks, cross-asset sensitivities, and Value at Risk (VaR). With full transparency on positions, investors can slice and dice their exposure according to all segments down to the constituent level or perform an independent portfolio valuation.
Our solution encompasses a sophisticated full repricing risk modelling, to solve the most complex of cross-asset strategies with non-linear profiles.
The dynamic nature of strategies requires powerful visualization for immediate alerts on risk concentrations, rebalancing signals, and factor rotation.
Our technology allows data integration in multi-format, which is then normalized, cleansed, and enriched into a consistent, validated, and structured framework for complimentary and seamless integration into third party risk systems. Position-level risk reports are tailored to match institutional investors needs, including compliance monitoring & regulatory reporting.
Discover the power of Premialab Pure Factors®
Capturing key market risk factors across asset classes, styles and regions