The IAS is designed to achieve the Post Modern Portfolio Theory objectives of improving investor returns and reducing down side risk. The system gives faster, easier and more flexible access to intuitive, meaningful portfolio analysis. Thereby, allowing for greater time to be spent interpreting outputs and less time trying to get them.
âThe software has been in Beta testing for the past 4 months with a test group of 200 people and the feedback thus far has been very positiveâ says IAS Project Originator and Infiniti CIO, Peter Urbani.
âThis package has been built by portfolio managers for portfolio managers and does not suffer the operational difficulties of most other larger packages which are primarily accounting systems with a portfolio module added on as an afterthought. The IAS is designed purely and simply to allow portfolio managers to build better portfolios and to manage their risk quickly and easily. Ultimately it is designed to help save time and money through more effective risk monitoring.â
âInfiniti found that working as a Hedge Fund of Funds (FoF) manager, we needed a better way to filter and amass data to build our portfolios. In particular, we needed a system that would take account of the nonlinearities inherent in hedge funds and be able limit the downside risks. Our frustrations with using existing available modeling systems really forced us to build our own.â
âTime is the ultimate luxury in todayâs fast paced world where portfolio managers are swamped by data: it is not uncommon for a portfolio manager to receive up to 500 emails daily, all with attachments and attend several meetings and presentations. All of this leaves little time for them to sit still and think about ways to improve the performance or risk characteristics of their portfolio; which is what they are actually paid for, â says Urbani.
âModeling portfolios in spreadsheet packages such as Excel remains widespread but is time consuming and dangerous from an error perspective. Nor is the statistical library of Excel up to the demands of the modern portfolio. Put simply, Excel does not âcut it anymoreâ as a data system for high-end portfolio managers,â said Mr. Urbani.
Tim Steer who is the IAS Project Manager and Infinitiâs Head of Quantitative Research, says, âWe have paid particular attention to the workflow of the portfolio management process and have designed the system around this, with ease of use in mind. The IAS seeks to improve portfolio development time, requiring the user to import an Excel or .csv file, with only a few additional button clicks required to analyse or improve their portfolio.â The initial launch version of the IAS sells at roughly half the price of similar packages, which brings it within the budget range of most Family Offices, high end Independent Financial Advisors (IFAâs) and other intermediaries. Data security was a major issue that was considered, all data remains confidential to the user and is not shared with Infiniti.