Markov Processes International (MPI), a provider of investment research, technology, analytics and indices for the global investment management industry, has released the Stylus Pro 11.4, the latest version of its flagship investment analytics software.
The firm writes that new release introduces the ability to perform historical regime analysis and stress testing, as well as hypothetical scenario analysis, or ‘what-if’ shocks, on investment products and portfolios. It also introduces proxy-handling capabilities that enable users to extend analysis for shorter-lived funds.
MPI’s returns-based risk offering is focused on meeting the needs of its core clients—fund selectors and fund sellers. The firm’s industry-leading quantitative analysis models help deliver precise, flexible risk capabilities with speed and cost efficiency.
Regime analysis enables investment professionals—from advisers to institutional investors—to achieve deeper insight into how a fund might perform in various market conditions, such as high market volatility or rising rates.
Historical stress tests enable users to analyse fund performance during specific market events, like the Credit Crisis or dot-com crash. Scenario analysis enables users to perform theoretical shocks to a fund or portfolio to identify potential risks in hypothetical market conditions.
“While past performance is never a guarantee of future results, there are significant insights to be gleaned from analysing a fund’s potential behaviour during certain market and economic conditions or historical events,” says Michael Markov (pictured), Co-Founder and CEO of MPI. “With Stylus Pro 11.4, we are aiming to offer our clients a more effective and impactful way of identifying, analysing and presenting those risk characteristics.”
To support new features in Stylus Pro, MPI has also made several enhancements to Stylus Workspace, the quantitative research framework within Stylus Pro, which was designed to add precision, speed and clarity to fund analysis. Enhancements include the addition of a library of MPI-created regime models and historical events as well as preassigned fund proxies to automatically extend the histories of shorter-lived products.
Advanced features in Stylus Pro 11.4 offer users the flexibility to create their own regimes and scenarios to isolate nearly any condition they can think of, the firm writes. Users can also assign their own custom proxies to tailor investment research, analysis and reporting to meet their specific needs.
