You know how difficult it is to evaluate risk in your portfolio, especially when it includes alternative investments. PerTrac RiskPlus is an innovative portfolio risk management solution designed for funds of funds, pension funds, sovereign wealth funds, endowments, foundations, family offices and their investment consultants who need to analyze risk in even the most opaque asset classes.
PerTrac partnered with FinAnalytica, the leading provider of real-world risk and portfolio construction solutions, to deliver RiskPlus to investors looking for an affordable and user-friendly way to conduct in-depth risk assessment of their portfolios. Historically, position-based analysis has been considered the only way to examine portfolio risk. But it’s often difficult, if not impossible, to get an updated list of holdings from each fund manager on a timely basis. RiskPlus employs returns-based analysis, using FinAnalytica’s patented fat-tailed methodology. Traditional risk frameworks use normal return distributions where as fat-tailed risk frameworks, those used within RiskPlus, exhibit non-normal distributions with large degrees of skew and excess kurtosis which are hidden from normal distributions.
PerTrac RiskPlus uses your existing fund allocations and monthly return streams to create a comprehensive, easy to interpret report that breaks down your portfolio's risk and return components. RiskPlus gives users the flexibility to customize their risk analysis using custom factor models, risk budgeting and user-defined stress tests so you can see which funds may deserve greater allocations, which ones are problematic, and understand how your portfolio can be expected to perform if certain crisis scenarios were to re-occur in the future.
PerTrac RiskPlus is available as an optional module integrated into the latest version of PerTrac Analytics.