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Investment Analytics

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investment Analytics

Institutional investors are constantly challenged by the need to process data and information from multiple sources in order to assess risk, compliance against guidelines, perform attribution analysis, review variance from benchmarks and perform manager due diligence. PRISM offers an integrated solution to help solve these “problems”.

Many systems offer analytics that have a single focus, such as risk, or only holdings based or returns based analytics. Additionally, these systems generally require data to be loaded in a unique, particular format requiring significant manual intervention. Using multiple systems requires duplication of this effort and is labor intensive. Users may require a team that focuses solely on data gathering and duplication of effort to load the data into multiple places to achieve a particular output that must then be aggregated and assimilated against the data outputs from the other systems. PRISM allows data to be entered once and then analyzed multiple ways, generating any report desired.

Key Features/Benefits

  • Employs an Analytic Wizard tool that allows users to generate several traditional reports, custom analysis and even incorporate third party analytical tools to process information quickly and easily.
  • Special plug-and-play features allow for the creation of unique user designs, amplifying the overall integration utility of PRISM while giving the user a broad array of third party tools to aid in the portfolio review.
  • Freedom from limitations of specialty product set-ups and data transfer issues save time and money for users.
  • Frameworks can be developed to easily apply a standard best practice policy to all user locations at little to no extra cost.
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Types of Analysis

Due to the integrated platform, PRISM provides a user friendly system that stores data and documents, provides analytics on the information and then creates reports for the end user. Additionally, unlike other systems, PRISM has the ability to analyze portfolios and investments in multi-dimensional ways. Besides traditional risk/return analysis, PRISM also offers factor based analysis.

Due to PRISM’s flexible design, users can determine the performance periods and benchmarks at any level of an investment (e.g. individual investments or aggregate levels based on policy or asset class for example). PRISM can calculate absolute performance as well as relative to benchmarks for both liquid and illiquid investments, and perform risk and statistical analysis on the returns and holdings.

PRISM has an advanced multi-factor regression tool which can regress a portfolio or individual invesment against any number of factors to identify all of the beta exposures and alphas. Using the factor model, it breaks down the risk component across various factors. There are four different methods of regression that can be utilized to calculate contribution to risk utilizing either ETL or standard deviation.

Attribution analysis is a critical part of understanding the effectiveness of asset allocation and investment selection decisions. PRISM utilizes both Brinson and Regression models to break down the allocation, selection and interaction effects at either the portfolio/composite level or the individual investment level.

Asset data is utilized to determine attribution of various variables (e.g. size, growth, momentum, sector, country, currency etc.) either for a single period or for multiple periods. The Brinson model can be utilized to run attribution for a single variable while the regression model can be used against multiple variables simultaneously.

PRISM has a built in optimizer to aid with your asset allocation needs. After users specify their constraints, the optimizer will provide solutions that maximize your portfolios utility. The optimizer guides you through the process in a user friendly way, allowing you to find an asset allocation solution to meet your risk/return goals. Currently, optimization can be completed using either mean variance or CVaR.

Run optimization for both active investments that are currently part of portfolio as well as including prospective investments to understand the allocation effect of prospective managers. Construct portfolio allocation for your expected risk/return criteria.