Key benefits of PortfolioPrecision include the ability to employ tax-advantaged investment strategies across multiple account holders. The ability to control risk, immunizing portfolios against several potentially adverse future events, is also a major benefit of the software.
Among its many features, PortfolioPrecision supports tax-sensitive optimization (at the tax lot level), allowing managers of private client portfolios to deliver superior after-tax returns. For managers with several accounts, the applicationâs batch processor enables the rebalancing of multiple accounts in a single step, taking into consideration individual portfolio strategies or compliance rules. Finally, PortfolioPrecision is the only commercial application that enables portfolio managers to track multiple benchmarks or use multiple overlapping risk models within the same portfolio.
"PortfolioPrecision represents a significant advance for the financial services industry," SebastiÃ¡n Ceria Ph.D., President and CEO of Axioma, said. "It matches the powerful optimization engine of our earlier applications with functions that go to the heart of the issues faced in the increasingly competitive world of portfolio management," he added. "Earlier versions of our optimization technology are already in use by a number of recognized Wall Street institutions, which praise it for its flexibility, scalability, speed, and robustness. After receiving significant client feedback over the last few months, we were able to incorporate those suggestions into the development of PortfolioPrecision."
Like Axiomaâs earlier products, PortfolioPrecision allows portfolio managers to solve realistic portfolio construction and rebalancing problems. It can be used in all phases of institutional and private-client wealth management, and has been demonstrated to improve portfolio manager efficiency significantly.
PortfolioPrecision also includes a critical characteristic that should be present in all portfolio construction tools: the ability to treat constraints as "soft" constraints. The use of soft constraints dramatically reduces the occurrence of unsolvable problems, eliminating one of the major frustrations portfolio managers have with existing portfolio construction software. By utilizing soft constraint functionality, the portfolio manager gets a much clearer picture of how compliance rules or investment strategy affect the expected returns of the resulting portfolio. This level of transparency enables portfolio managers to provide clients with a clear rationale when offering them specific investment advice.
While its inner layers include some of the most sophisticated quantitative tools currently available, PortfolioPrecisionâs graphical user interface uses methods and terms familiar to portfolio managers and was designed from the ground up to enhance and improve the portfolio construction process. PortfolioPrecision is also extremely scalable. It can be used on either a standalone PC, or is easily integrated into existing trading and account management systems using Axiomaâs standard library APIs. A Web-enabled interface is also available for remote users.