Axioma has entered the multi-asset class risk space with the introduction of Axioma Risk, a next-generation risk-management platform for risk officers, portfolio managers, asset owners and consultants.
Sebastian Ceria, PhD, Axioma’s founder and Chief Executive Officer, says: “This is a watershed initiative for Axioma. We built this company on a foundation of innovation and superior customer service. We leveraged these attributes to create and deliver portfolio-construction tools and risk models that set new industry standards for performance and flexibility in the equities space. We are now leveraging those same attributes to support Axioma’s ambitious expansion into the multi-asset class risk space.”
Axioma Risk, the company’s initial offering in the multi-asset class risk space, is a unified risk-management platform for middle-to-front office users. Axioma Risk meets the rigorous demands of portfolio managers, risk officers, asset owners and consultants by delivering unparalleled risk reporting, risk analysis and decision support for multi-asset class portfolios.
“What we are witnessing today is an increasingly complex risk environment where multi-asset class investing is proliferating,” says Ian Webster, Axioma’s Managing Director Europe. “Axioma Risk’s state-of-the-art toolset, built with the latest technology, gives clients the power and flexibility to address the most complex and diverse risk questions. As a unified platform, portfolio managers and risk officers can now speak the same language when it comes to risk.”
Axioma Risk is fully customisable and designed specifically for decision support, enabling a full spectrum of users – from portfolio managers to consultants – to tailor risk reporting and analysis to their specific needs. Users may choose single or multi-step simulations, historical (empirical) simulations, Monte Carlo simulations or linear parametric models. The simulation-based analytics utilise Axioma’s Robust Factor Models, which are fully integrated into the platform. Multiple built-in options enable users to fine-tune their analyses and results, and to create stress tests to measure the impact of potential events. Front-office quality analytics utilise a leading pricing library, and the platform is fully integrated with market data, thus providing a turn-key solution for handling exchange-traded and illiquid securities.
“Axioma assembled a team of experienced professionals who built Axioma Risk from the ground up over a period of nearly three years,” says Ceria. “The research, expertise, technology and innovation that we have poured into Axioma Risk have resulted in a platform that is unparalleled in the marketplace in terms of flexibility, features and performance.”
In addition, Axioma Risk’s innovative and highly scalable architecture utilises cloud technology that allows Axioma Risk to perform complex and time-consuming calculations and analytics in parallel across a large grid of processors. This same architecture enables a deployment option that guarantees the confidentiality of client holdings and trading strategies by only sending single security requests to the cloud for computation. Portfolio weights never go beyond the client’s firewall.