A unique approach to econometric asset portfolio management and dynamic scenario simulation
Investment portfolios solely based on historical risk/return ratios may prove inadequately positioned in new-to-the-world and crisis situations. To avoid a false sense of security, many institutional investors have begun to stress-test their portfolio based on real-world ‘what if’ scenarios.
Verocy offers a unique approach to econometric asset portfolio management, called Wealth Radar, to enhance performance of assets under management and to assure compliance with regulatory requirements. We provide solutions and services to simulate, interpret and report adverse effects on asset portfolios from potential geopolitical, economic or monetary shocks.
TAILOR-MADE RISK SOLUTIONS
- One Platform, Modular Flexibility
- Adapt and Expand Risk Solutions
- Award-Winning Risk Tooling
EMPOWER YOUR BUSINESS
- Portfolio-Based Client Segmentation
- Offer Portfolio-Based Solutions
- Live Monitoring Portfolio Risk
- Log, Administrate and Account
- Streamline Regulatory Reporting
- Reduce Legal & Operational Risks
- To Client’s Understanding
- To Client’s Portfolio Needs
- Give Substance to Communication
Wealth Radar is built on the independent flexible Wealth Radar software platform. In order to fulfill specific requirements, the platform can easily be enriched with new parameters, indicators and in-house and acquired datasets. It is fully flexible and Wealth Radar is perfectly suited for:
- Stress-testing under real-world economic scenarios
- Hedging portfolios for future risks
- Simulating human behavior
- Comparing portfolio performance to popular indicators
- Gaining insight in the economy
- Analyzing risk profiles
- A conscientious protocol for decision-making, accountability and compliance
Wealth Radar for the enterprise
WEALTH RADAR is capable of linear and non-linear regressions (behavioral science algorithms), efficient frontier analysis and liability analysis, all in real time. It comes with a wide variety of macro-economic data sets and allows full scalability and flexibility as the variables can easily be enriched with new parameters, indicators and in-house and acquired datasets.
Wealth Radar Software Solutions are built on the same versatile engine and can be tailored to serve specific requirements for private investors, asset managers, sovereign wealth funds, pension funds, insurance companies and real estate valuation.
WEALTH RADAR, the fully functional core building block for various applications. This solution is deployed within your infrastructure for real-time evaluation of:
- Asset Allocation Strategies and Planning
- Portfolio Risk Management and Optimization
- Performance Attribution and Monitoring
- Investment Decision Support
- and more …
WEALTH RADAR ALM is the first asset-liability management (ALM) tool that can, next to normal linear regression, also include non-linear behavioral rules. The structure that these rules add to the used B-VAR model allow the scenario generator to produce a much broader range of qualitative dynamics than would be possible when using a standard VAR (or similar) model. It is the only ALM model capable of generating sudden qualitative changes in economic dynamics characteristic for economic crises. Allowing scenarios, behavioral rules, data series and time periods to be easily changed by the user according to his preferences. WEALTH RADAR ALM is specifically designed for:
- Valuation & pricing
- Risk attribution / accounting
- Balance sheet management
- Mortgage / loan acceptance
- Accountability and compliance reporting
Please check out the recorded demo above or request a live demo or more information!
Financial professionals around the world recognize the unique nature of the ongoing financial crisis. For us this is no different. Our team of analysts have analyzed the international monetary and financial arrangements and its historical context for decades, each from his own academic field of expertise. Although our financial analysts do not have a specific ‘investment belief’, they have a keen eye on the ‘beliefs’ of market participants.
Often a perceived investment problem can turn out to be a chance, depending on your point of view. Our team of analysts can help you confront and validate economic assumptions and assist you in setting realistic parameters. Besides, our analysts observe changing regulatory environments as well as shifting monetary policies, which can help you fine-tune your strategy to manage risks.
In Wealth Radar, your investment portfolio can be tested in two different ways. The first is based on conventional ‘linear’ assumptions, i.e. straightforward economic scenarios. The SyMath platform however also allows for non-linear algorithms and can thus be equipped with different ‘behavioral rules’. Rational investors can for example be replaced with naïve, risk averse or trend-following investors.
Wealth Radar is unique in its capacity to combine both linear and non-linear approaches, and it is our assertion that this combination allows you to build a much richer insight into your risk profile. It enhances strategic and tactical portfolio optimization significantly. Wealth Radar is also very much suited as a model for second opinions and reverse stress-testing clients’ economic scenarios. Wealth Radar simply allows you to substantiate your investment strategy more effectively.
Thinking in terms of economic scenarios is getting more traction. In formulating scenarios, economic theory or investment beliefs may be useful but they may also cloud judgements due to untenable assumptions or asymmetric information. At Verocy and Symetrics, we are pragmatically agnostic in that we focus on what monetary, fiscal and real economic policies are about. Whether one associates the financial crisis with secular stagnation, a shortage of safe assets, or an excessive elasticity of financial markets, we condense expert views in forward looking scenarios, integrated in Wealth Radar.
Wealth Radar is software based on Wolfram Mathematica. The graphical interface is exceptionally fast, compact and flexible, and has unrivalled computational capabilities. It is capable of linear and non-linear regressions (behavioral science algorithms), efficient frontier analysis and liability analysis, all in real time. With Wealth Radar you can stress-test your investment portfolio under a suite of real-world economic scenarios, hedge portfolios for future risks, simulate human investment behavior, measure portfolio performance in terms of various performance indicators and gain insight in the economy and various risk profiles.
Wealth Radar is designed to examine both linear and non-linear financial developments in relation to asset portfolios and measure effects of various economic scenarios on returns on investment. By adding behavioral rules and economic structure to Wealth Radar, model output gains relevance while dependency on extensive historical datasets is reduced. The Wealth Radar software platform is unique as it combines:
- Hybrid Behavioral Vector Auto Regressive (B-VAR) Model
- Translating economic scenarios into Quantitative models
- Non-Linear Regressions (Behavioral Science)
- Efficient Frontier analysis
- Liability Analysis
- Efficient real-time analysis
- In-house, External, Public and Non-public Datasets
Verocy and partners will provide you with WEALTH RADAR SOFTWARE SERVICES required for a reliable installation and integration of Wealth Radar Software Solutions.
From Requirements definition, Solution design, New parameter-indicator-dataset integration to software development, overall project management and in-house training.