PerTrac, a provider of analytic, reporting and communications software for investment professionals, says 20 firms have selected PerTrac RiskPlus as their solution of choice for examining and reporting on risk exposure across their portfolios.
PerTrac partnered with FinAnalytica, a provider of real-world risk and portfolio construction solutions, to deliver PerTrac RiskPlus to customers looking to conduct in-depth risk assessment of their portfolios.
“PerTrac RiskPlus has been embraced by investment professionals who are looking for a way to identify risk in portfolios that include funds and alternative investments,” says Jeff Hendren, co-president of PerTrac. “Our customers are realising significant new portfolio insight using technology that would previously have been unavailable to them. By partnering with FinAnalytica, we have been able to provide high-level capabilities and sophisticated returns-based risk analysis, at a price that’s affordable to all investors.”
PerTrac RiskPlus is integrated into the latest version of PerTrac Analytics, PerTrac’s asset allocation and investment analysis software.
PerTrac RiskPlus provides portfolio managers and risk professionals with a report that breaks down a portfolio’s risk and return components. It allows users to see which funds may deserve greater allocations, which ones are problematic and how a portfolio can be expected to perform if certain crisis scenarios were to re-occur in the future.
The solution employs FinAnalytica’s patented fat-tailed methodology to analyse monthly portfolio returns and brings together results of fat-tailed risk and return statistics, correlations, factor analysis, risk reporting, risk budgeting and stress testing.
“It’s our belief that the key to successful investment management is the consistent and disciplined implementation of portfolio strategies that have been tested over a long period of time in a variety of market cycles,” says David Dodson, director, Salem Partners Wealth Management. “PerTrac RiskPlus gives us an easy-to-use model that forecasts the risk in both normal environments and in times of extreme market stress, allowing us to diversify tail risk and ultimately to protect our clients' capital.”