NEW YORK, July 11, 2019 – Axioma, the leading global provider of enterprise risk management, portfolio construction and regulatory reporting solutions, has launched Linked Models, a new feature of the Risk Model MachineTM solution. Linked Models offer investment professionals a streamlined and clear view of risk across regions or sectors, creating consistency in the risk/return profile as viewed from the front and middle offices.
“Linked Models enable managers to create a custom risk model that captures exposures from all regions or sectors, without any inconsistencies or skewed reporting,” said Alessandro Michelini, Axioma’s Head of Front Office Solutions. “With Risk Model Machine, customers can already build custom risk models, based on Axioma’s research and risk model engine and combined with a firm’s own unique insights. Linked Models extend these capabilities by giving users the flexibility to combine fundamental factor models into a view that aligns fully with their investment portfolio. Until now, portfolio managers and risk managers had to choose models offering a very tailored yet narrow scope, or a very broad and predefined view potentially lacking clarity. Linked Models are a game changer, by allowing users to fully customize the depth and breadth of a model without compromises.”
Linked Models can be deployed to meet a variety of use cases, for example:
- Single-country models linked to regional models to capture portfolio exposures beyond a single country mandate.
- Single-sector models linked to other sector models to accurately visualize risk analytics in a given sector.
- Custom models linked to Axioma base models to allow for a consistent view of risk across the enterprise.
Custom risk models built with the Risk Model Machine are used extensively by both fundamental and quantitative firms, from some of the industry’s largest institutions to sophisticated boutiques. The Risk Model Machine is a flexible, powerful and easy-to-use tool, providing users with a competitive edge in risk forecasting, portfolio construction, client reporting and alpha research for a broad range of investment processes.