Financial, economic and demographic developments force asset managers to define a clear investment strategy which is consistent with their defined objectives and risk tolerance as set by the asset owner, and is based on sound portfolio management principles. Finding the right balance between the interests of the various stakeholders is central to good risk management. This requires a systematic approach starting with the identification of the strategic objectives, suitable risk measures and appropriate risk budget, and leading to the most suitable investment strategy. Ortec Finance has been serving the asset management world globally for over three decades and offers quantitative models and high quality advice for setting up or evaluating a practical risk management policy.
Stakeholders increasingly demand more insight and transparency regarding the performance of asset managers. They expect quick and reliable ex-post risk and return analyses that clearly explain how the investments have performed. A key aspect in performance analysis is to determine the contribution of asset classes, sectors or even individual securities to the risk and return of portfolios. Accurate performance measurement and attribution can show which segments consistently add value on a risk-adjusted basis, and which do not, and help to identify strengths and weaknesses of the investment process.