The global balanced risk model describes the risk profiles of over two hundred thousand securities including equities, government and corporate bonds, currencies, commodities and popular derivatives. Its coverage extends beyond developed economies to emerging, Arabian and frontier territories. In addition, LVAM will implement SunGardâs APT Pro6, a desktop application used for exploratory risk analysis and risk-controlled portfolio construction processes, including portfolio optimization. APTâs Pro6 will help LVAM understand and control market risks through the analysis of volatility, relative risk and sensitivity to prevalent market factors, as well as stress test all funds.
Richard Acela, senior systems analyst at LVAM, commented: âSunGardâs APT will help us gain greater control of our risk management processes and better understand the sources of risk that we are exposed to â both at the fund and aggregated level. The flexibility of the solutionâs risk attribution model allows us to investigate portfolio exposure to a choice of over 450 explanatory factors, rather than a static series of pre-packaged factors. SunGardâs APT complements our existing enterprise data management system, providing additional data to help us gain effective risk control. We are also working to tighten internal deadlines and have been impressed with how quickly we can implement the SunGard solution.â
Emanuel Mond, president of SunGardâs alternative investments business, commented: âIn these volatile times, there is an increased focus on risk modeling. LVAM joins a growing number of firms selecting SunGardâs APT to help ensure they can best understand the risks to their portfolios. APT models offer comprehensive coverage of asset classes and provide firms with a choice of two approaches â Monte Carlo or factor-based modeling with a factor library â to help ensure they adapt to market conditions.â