Axioma partners with Omega Point to enable ‘quantamental’ approach in fundamental investing
Axioma, a global provider of risk and portfolio management solutions, has formed a new partnership with Omega Point (www.ompnt.com), a portfolio intelligence tool for fundamental-style managers.
Through this licensing agreement, Omega Point clients can now access Axioma’s suite of factor models via their existing workflow. This will enable closer alignment of modelling assumptions and risk factors across the front and middle office to achieve a shared view on the drivers of performance and risk that will ultimately lead to more informed investment decisions.
With regulations like MiFID II – set for implementation in 2018 – pressurising buy-side firms to streamline vendor management and better manage their capital and dependencies, Axioma is seeking to facilitate this process through closer collaboration with other solutions providers like Omega Point.
“Forward-looking vendors need to seamlessly work together to better support market participants as they navigate the changing regulatory landscape,” says Sunay Shah (pictured), Executive Director, Global Partnerships at Axioma. “Our partnership with Omega Point addresses the buy-side’s need to mitigate the risks of integrating multiple systems, and exemplifies our commitment to delivering more value through closer collaboration with innovative fintech companies.”
The integration of Axioma’s equity factor models with Omega Point enables full portfolio risk decomposition through factor, industry and asset-specific analytics. The unified Axioma-Omega Point solution provides integrated historical factor returns for full factor-based performance attribution. Access to this long-term view of factor impacts will enable mutual clients to satisfy the growing demand from their investors for greater transparency and sharper insights into the drivers of their returns.
“The rise of algorithmic and data-driven investing is challenging fundamental managers, representing USD20 trillion of assets globally, to embrace a hybrid ‘quantamental’ approach to generate alpha and improve returns,” says Omer Cedar, CEO and Co-founder of Omega Point. “By enabling turnkey access to Axioma’s models via the Omega Point workflow, our clients can access the kind of market insight that instils more confidence in their investment decisions.”