• Axioma rolls out new Europe equity risk model

    Wednesday, July 11th, 2018

    • The new, European-focused, equity factor risk model offers investors a granular view of the drivers of risk and return in the region 

    Axioma, a leading provider of enterprise market risk analytics and portfolio construction solutions, has added a new Europe equity factor risk model (EU4) to its next-generation Equity Factor Risk Model suite. The new model provides institutions investing in Europe with region-specific insights for risk management, performance attribution, and portfolio construction.

    “Amid market uncertainty and volatility in Europe, it’s even more important for investors with a European mandate to have a risk model that aligns with their investment process to accurately explain risk and performance,” said Alessandro Michelini, head of Portfolio Solutions at Axioma. “EU4 incorporates our latest research and methodologies and was build based on strong market demand. The additional customisation capabilities and access to Factor Libraries provide a complete and flexible solution to both portfolio managers and risk managers.”

    The new equity factor risk model balances the investment community’s need for a robust standard solution with flexibility and customisation options via Axioma’s Risk Model Machine. This unique tool enables customising pre-packaged models to match portfolio managers’ specific investment processes and strategies.
    It is part of Axioma’s complete suite of global equity portfolio construction and analytics solutions, which include:

    • Daily Fundamental models with comprehensive factor coverage for intuitive and detailed risk analysis and performance attribution 
    • Daily Statistical models that can provide important additional risk and portfolio construction insights
    • Short and Medium Horizon Model variations to increase risk awareness in fast changing environments and align with a portfolio’s rebalancing frequency 
    • The ability to customise important model features, such as the factors, horizon, and estimation universe and create a fully customised risk model using Axioma Risk Model Machine
    • Extensive factor libraries and the ability to incorporate your own libraries or those through third-party partners to identify sensitivities to additional factors, construct strategies titled to custom factor definitions and build fully customised risk models.

    Axioma regularly reviews, updates and builds models to continue to provide investors with best-in-class solutions. As part of Axioma’s collaborative approach to innovation and product development, EU4 was designed and piloted in close cooperation with a group of Axioma’s clients across various firm types and investment strategies.

    About Axioma
    Axioma is a leading provider of enterprise risk management, portfolio construction, and risk and regulatory reporting solutions that offer incomparable insights into the constantly evolving state of risk. Financial institutions worldwide rely on Axioma’s sophisticated suite of tools and flexible open platform technology to unify the view of risk across front, middle and back office functions, helping to drive efficiency and bring transparency to performance. Axioma has received numerous accolades for its innovative technology, which serves as the centerpiece of its clients’ risk management strategy. In 2017 Axioma appeared on the Chartis RiskTech100® 2017, a ranking of the world’s most significant risk and compliance technology companies, and its founder and CEO, Sebastian Ceria appeared on Institutional Investor’s Tech 40 List of “Financial Technology Leaders” for the fourth consecutive year. Axioma was also named Risk Management System of the Year at the Global Investor Investment Excellence Awards and won the Best Risk Management Software Firm/Supplier category at the 2017 Hedgeweek Global Awards. Axioma is headquartered in New York, with offices throughout Europe and Asia-Pacific. The Axioma logos and product brands are trademarks/service marks of Axioma, Inc. For more information please visit Follow us on Twitter and LinkedIn.