SOURCE: Investor Analytics
NEW YORK, NY and LONDON--(Marketwire - Sep 27, 2012) - In a webinar to launch a new Investor Analytics (IA) White Paper Adding It All Up: The Myths and Realities of Risk Aggregation and the Risk Aggregation Survival Guide, an audience poll revealed that more than 70% of respondents said the single most important reason to perform risk aggregation across managers is to actively manage portfolios. In the webinar, Damian Handzy, CEO of Investor Analytics, and Daniel Siliski, Risk Manager at FourWinds Capital Management (US) Inc., discussed the benefits and practicalities of risk aggregation.
One of the commonly held myths debunked by IA's white paper is that investors should tread gingerly when asking for transparency. As Damian Handzy said in response to webinar questions, "Clearly, it is no longer out of the norm to request position level transparency. In fact, it's out of the norm not to." He added: "Risk aggregation is a powerful tool that analyzes the dynamics of the portfolio, determines how its constituent parts move in concert with one another and shows a meaningful and accurate summary of the portfolio risks -- often revealing aspects that would otherwise remain hidden."
IA's Risk Aggregation Survival Guide highlights that "risk aggregation is 80% data management and 20% analysis," and there are no shortcuts to doing the work. More than 85% of poll respondents agreed that dealing with the data is the most challenging aspect, which leads them to third-party risk aggregators.
Handzy also debunked the myth that anything less than 100% transparency is unacceptable. Daniel Siliski further added that there are valid approaches to risk modeling at different points across the transparency spectrum, including returns-based models.
"Not all managers provide transparency, but using their returns can deliver extra value because the data provides dynamics over time. By including positions-based, exposure-based and returns-based models, IA's suite of services offers many routes to achieving risk aggregation," said Siliski.
Adding It All Up: The Myths and Realities of Risk Aggregation and the Risk Aggregation Survival Guide can be requested from www.investoranalytics.com or by contacting email@example.com
The Myths, Realities and Benefits of Risk Aggregation webinar was hosted by PRMIA, the Professional Risk Managers' International Association.
Notes to Editors:
Investor Analytics LLC, headquartered in New York with offices in Boston and London, has been providing portfolio and risk management services to the investment management industry since 1999. IA processes more than USD$340 billion of assets daily for global hedge funds, fund of funds, money market funds, financial institutions, pension funds and endowments. IA employs proprietary methodologies to analyze financial investment portfolios and provides clients with a suite of risk and transparency tools.
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