We believe that the ultimate risk for clients is their inability to meet their financial obligations. Therefore, risk management is at the core of everything we do and is integral to creating value.
In today’s investment environment, strong risk management is required to avoid loss and to maximize risk-adjusted returns. We apply robust risk analyses within the portfolio construction process. This ensures that your portfolio remains consistent with your asset allocation and risk tolerance.
We monitor your portfolio in real time from various risk perspectives: volatility, liquidity, concentrations, stress scenarios and exposure to factors. Our risk team also plays an active role in the investment decision-making process. They apply multi-factor attribution analysis (including macroeconomic factors and idiosyncratic risks) to understand the potential for certain risks on the horizon so that informed decisions can be made.
In addition, we incorporate environmental, social and governance (ESG) factors in the investment process to better understand and manage these risks. We believe ESG factors must be considered across asset classes as these can contribute to long-term performance.
We prioritize transparency. We clearly communicate risks and opportunities and explain performance in the context of your risk budget and risk/return drivers.
We use a variety of sophisticated tools and processes within our organization, captured in the following framework:
Systems & Data