Portfolio Construction
An important element of the APT offering is
portfolio construction and rebalancing via optimization which is provided through the APTPro product. Firms require portfolio construction tools to build better-performing funds. The APT Optimzier allows customers to achieve this by quantifying the trade-offs between risk and return among their investments, providing recommended trades consistent with the manager’s mandate.
Features
- Uses the risk models to ensure that risk requirements, whether mandated by regulators or within the investment firm, are complied with
- The rigorous process is useful for both asset allocation and stock selection, and can be combined with other portfolio construction methodologies within judgemental strategies
- Analyzes performance based on positions, factors, returns, periods and asset class
- Adjusts analytic output based on user-defined time periods
Benefits
- Provides analytical results to construct and optimize portfolio profitability
- Assists with regulatory compliance
- Provides drill-down capabilities to factor risk attribution, beta analysis and security-level analytics such as each stock's contribution to risk
- Measures performance
- Optimizes tax efficiency within analytics for US and European tax codes