Turnkey access to Axioma’s suite of factor models enables managers to boost portfolio performance with easy-to-use factor analysis tools
Axioma, a global provider of innovative risk and portfolio management solutions, today announced a new partnership with Omega Point, a portfolio intelligence tool for fundamental-style managers. Through this licensing agreement, Omega Point clients can now access Axioma’s suite of factor models via their existing workflow. This will enable closer alignment of modelling assumptions and risk factors across the front and middle office to achieve a shared view on the drivers of performance and risk that will ultimately lead to more informed investment decisions.
With regulations like MiFID II - set for implementation in 2018 - pressurising buy-side firms to streamline vendor management and better manage their capital and dependencies, Axioma is seeking to facilitate this process through closer collaboration with other solutions providers like Omega Point.
“Forward-looking vendors need to seamlessly work together to better support market participants as they navigate the changing regulatory landscape,” said Sunay Shah, Executive Director, Global Partnerships at Axioma. “Our partnership with Omega Point addresses the buy-side’s need to mitigate the risks of integrating multiple systems, and exemplifies our commitment to delivering more value through closer collaboration with innovative fintech companies.”
The integration of Axioma’s equity factor models with Omega Point enables full portfolio risk decomposition through factor, industry and asset-specific analytics. The unified Axioma-Omega Point solution provides integrated historical factor returns for full factor-based performance attribution. Access to this long-term view of factor impacts will enable mutual clients to satisfy the growing demand from their investors for greater transparency and sharper insights into the drivers of their returns.
“The rise of algorithmic and data-driven investing is challenging fundamental managers, representing $20 trillion of assets globally, to embrace a hybrid ‘quantamental’ approach to generate alpha and improve returns,” said Omer Cedar, CEO and Co-founder of Omega Point. “By enabling turnkey access to Axioma’s models via the Omega Point workflow, our clients can access the kind of market insight that instils more confidence in their investment decisions.”
Axioma is a leading provider of enterprise risk management, portfolio construction, and risk and regulatory reporting solutions that offer incomparable insights into the constantly evolving state of risk. Financial institutions worldwide rely on Axioma’s sophisticated suite of tools and flexible open platform technology to unify the view of risk across front, middle and back office functions, helping to drive efficiency and bring transparency to performance. Axioma has received numerous accolades for its innovative technology, which serves as the centerpiece of its clients’ risk management strategy. In 2016, its enterprise risk management solution, Axioma Risk, was named Best Buy-Side Risk/Portfolio Analytics Product at the Buy-Side Technology Awards and the Best Innovative Solution at the L’Agefi AMtech Day Awards. Axioma was also included on the Chartis RiskTech100® 2017, a ranking of the world’s most significant risk and compliance technology companies. Axioma is headquartered in New York, with offices throughout Europe and Asia-Pacific. The Axioma logos and product brands are trademarks/service marks of Axioma, Inc.
Bridging quantitative and fundamental investing, Omega Point is the emerging leader in factor-based software that enables fundamental asset managers to focus on alpha, avoid factor draw-downs and discover what is really driving their P&L. Built by quants who have successfully managed multi-billion dollar portfolios using systematic strategies, Omega Point provides a turnkey package that integrates with your portfolio and automatically performs customised and scalable factor analysis. Harnessing vast computational power and big data analytics, we strip away complexity and make it easy for managers to understand, visualise, and optimise their portfolios with the most intuitive user interface on the market. Our machine-learning algorithms empower fundamental-focused asset managers to uncover over-exposed risk and discover rebalancing opportunities that boost alpha. Integrating factor-exposure decisions into the portfolio construction and rebalancing process enables you to actively position investment portfolios to achieve specific risk and return objectives. Headquartered in San Francisco, Omega Point also has a sales office in New York City.