Most markets fell in Q1, although commodity-dependent indices such as Canada did eke out small gains. Risk was up across the board and is higher than it was a year ago in most indices. US SH risk is in the 87th percentile relative to history.
Amid rising inflation worries and expectations of additional interest rate hikes by the Federal Reserve, U.S. Treasuries have undergone a huge sell-off in recent weeks with no signs of reduced pressure ahead — but sources said there’s still an important place for the embattled bonds in institutional portfolios
Charles River Development, a State Street Company, announced the launch of Tailored Portfolio Solutions, an offering that enables both wealth managers and asset managers to provide high-value, fully customized portfolios at scale.
Portfolio customization: Have you ever heard of it? If you’re a wealth manager, the answer is probably ‘yes’. But trying to keep up with investor demand to incorporate individual preferences across hundreds, if not thousands, of portfolios cost-efficiently, is a tall order requiring the right underlying technology and support across your organization.
Another tech bubble may be about to burst, triggering a US recession. There are multiple similarities between the current tech bubble and the dot-com bubble. This time, however, the Fed cannot leverage interest-rate cuts to put the brakes on a market decline, due to the current record-high inflation combined with low interest rates.
Qontigo has introduced a trading horizon view (“Trading Model”) for the Axioma US Equity Factor Risk Model, currently available in a short-horizon, medium-horizon, statistical and fundamental variants.
Qontigo has entered into a partnership with RepRisk, a pioneer and leader in ESG data science. Qontigo will enable solutions and access to RepRisk ESG risk data via Axioma portfolio analytics and risk models, and build indices under its STOXX family of brands.
Last quarter we discussed how markets seem to have decoupled. That has continued in Q4 as risk rose in the US (now among the riskiest markets but just around its long-term median) but was flat or fell in others.
Qontigo has made available ISS ESG, Clarity AI and Sustainalytics data within its financial optimizer, Axioma Portfolio Optimizer (APO). Sustainalytics will also be integrated into Axioma Portfolio Analytics (APA) for performance attribution and reporting as well as Axioma Risk Model Machine (RMM), which allows users to create custom risk models.