Market Risk Assessment Methodology
We extended the Market Risk Assessment methodology with new models and analysis methods. At the shortest time level, we consider the valuation changes of market participants, as the Behavioral Finance aspects, as well as the short-term cash flows. For this purpose, we have the Financial Liquidity Observatory, which observes measures the market behaviour of the various players on a daily basis and thus allows short-term risk signals to be generated. This daily observation of the risk appetite of the players and allocation changes allows us to implement a short term risk management strategy as well as leads to hedging actions.
Changes in the supply of investments can be observed on the one hand via changes in money supply and leverage, and on the other hand via the action taken by companies. In order to monitor the change in supply, the banking system, the shadow bank system, the central bank and capital actions by companies must therefore be monitored. We obtain this information from the Strategic Event Indicator, the monthly updated Risk Environment Indicator, which primarily processes financial and real economic fundamental data, and the qualitative analysis in the Monthly Market Update.
Science-based Marketing Strategy
For an asset management company we performed a study on the effect of adding convertible bonds to an institutional portfolio and adopted our portfolio creation program in order to construct more resilient portfolios. The study deals with the challenges for institutional investors to construct portfolios that generate a positive return on investment despite low interest rate environments and increased market risks due to the increasing over-indebtedness of national economies, but also limit potential losses in the event of major distortions.
Global Hegemonial Shift Analysis
With a global hegemonial shift and the end of the current reserve currency system, there are opportunities and risk on a business strategy level. We wrote a report for our clients in order to understand the ongoing processes and the upcoming regime shift.
The study offers different action item in order to profit from that shift as well as protect the current business model from potentially devesting risk factors. The conclusion from this report is a guidance from an investment perspective as well as for business continuity plans.
Investment Risk Management
For family offices and large institutional asset manager we created an investment risk management workshop series. In these workshops we present the state of the current investment environments and potential scenarios. In the workshop the participants develop under our guidance action plans and discuss different options to mitigate different investment risks.
Portfolio Risk Analysis
A large Swiss-based fundation assigned us to perform a risk analysis for their portfolio. We used our own developed "Advanced Investment Theory" approach and concluded that so far they have been working well under the current market regime. Given an expected change with more volatile and larger drawdowns, we suggested to expand their investable universe as well as to adopt a more resilient portfolio construction algorithm.
Their already conservative mandate could be improved to a non-loss one with active consideration of the investment environment. For that approach the foundation is using a prospective market analysis framework which will be improved with our systematic market analysis system.
Creation of a Wealth Management Platform
A successful Swiss-based Wealth Management firm partnered with us to expand their business model from an international (U)HNWI cliental to a Swiss-affluent and private banking cliental. We guided their management team in developing a strategy for them to gain access to new markets and diversify their client base and were able to apply our market knowledge and expertise to improve their processes and digital work environment and in setting up an efficient system which enables them to gain greater access to their target market. Our partner's aim was to strategically serve their clients with individualized investment solutions and offers digital access to their clients portfolio and information base.
Investment strategy for a global macro fund
An international Asset Management company partnered with us to develop the concept and strategy for a global macro fund based on our market analysis framework and the information strategy created for this fund.
The new fund is based on our proprietary investment framework products and is positioned to profit from the changing market environment, namely the new environment which is increasingly policy-driven with massive central bank intervention and asset purchase programs which often result in low-yielding returns, and huge geopolitical shifts.
Portfolio liquidity and risk management program
A Real Estate financial advisory firm partnered with us to develop a risk management and liquidity management platform. We both consulted them in the strategic development of the platform and provided the programming for key aspects of the back-end reporting and management environment.
Our partner's aim is to provide their clients in the real estate development and portfolio management sector with a solution for documentation for financing and investor reports. The software connects and aggregates each individual unit of an real estate portfolio including all projects and land reserves in order for the managers to be able to simulate different environments and base their action upon the outcome of potential interest rates shifts, project failures, economic downturns, defaults of project partners, and so on.
The reporting part of the software produces up-to-date summaries, outlooks, and return calculations for investors and financing partners as well gives a clear and concise overview of all projects and assets within the company's portfolio.
House view and market research
A global Asset and Wealth management company partnered with us to generate a quarterly report summarizing the House View of the company based on a well-sourced and curated selection of global market news and enriched by qualified assessments from our network of experts.
This consolidated information is documented and expanded into a quarterly report which focuses on the chosen topics of interest as relevant to their investment decisions and the markets they are targeting. The report considers geopolitical shifts, changes in national policies, investment trends, and financial market occurrences.
Each quarter the house view is published and has become a standard read for professionals investing in Asian markets.
Scoring model for stock selection
A Convertible-Bond fund partnered with us to develop a tailor-made multi-factor model to enhance their portfolio allocation and investment decisions. We provided the programming for a mathematically-based model in order to test which parameters have predictive power to assess stocks which are potential out-performers.
In the first step, we examined the scientific literature on stock selection metrics and compiled a list of factors that have been proved scientifically to have explanatory power. The second step narrowed in on factors that were specifically related to sources of return. The model provides a list of relevant companies and offers further metrics to separate companies into levels of attractiveness based on custom metrics such as risk-tolerance and return potential.
Implementation of a client service experience
A Private Banking boutique partnered with us to develop a software-supported investment advisory service for their client's portfolio allocation. We developed an investment process that can map out client's expectations and suggest optimum portfolios for their client advisers to implement.
Our partner aims to provide personalized customer service in a way that is both efficient and modern. The unique innovation of this approach is to move beyond simple volatility-targeted models into a multi-return expectation model that takes the investment environment into consideration and creates a more accurate depiction of the client's risk tolerance and return expectations.
Business innovation for independent wealth management companies
A large Swiss bank partnerd with us to create a portfolio of viable business models to support their wealth management client-firms in adopting a sustainable plan for future growth. We researched various business innovation techniques and adapted them to be suitable for wealth managers.
The business models provide insightful details into some of the major challenges faced by wealth managers and innovative ways to remain attractive in future environments and markets and increase their profitability margins.
Investment strategy for launching an Asian growth fund
A Hong-Kong based investment company partnered with us to expand their business in Europe by offering an easily accessible Asian growth fund. We designed the investment and marketing strategy to target European investors who are looking to profit form the expanding Asian markets.
The fund focuses on providing high-quality investment research and market analysis to its investors which we provide through a quarterly house-view as well as having a position on the investment committee where we provide regular updates on investment and market opportunities to improve the information base for the decision makers.
Implementation of a new investment framework
An Asian Asset and Wealth management company partnered with us to create and implement a new investment framework to streamline their decision-processes and create a more transparent environment for the investment team. We implemented an information management system to facilitate discussions among team members and the resulting information shared to their clients.
The new system helped improve their investment selection process and aligned their daily work routines with the company's investment philosophy. This also enabled them to better match their portfolio creation process to their client's needs and expectations within the venture capital and other illiquid investment markets.
The new investment framework provided the necessary structure to combine liquid bankable assets with illiquid non-bankable assets in a comprehensive portfolio.