advanced exposure analysis
The advanced exposure module makes use of the core risk-engine, where users can revalue their portfolio on an “unmerged” or a “merged” basis.
As with all the risk modules, a wealth of different reports allow the fund manager to view his risk from numerous angles.
Specific stocks may be specified within the portfolio as “hedge-protection” only, and these will be displayed as such in all reporting.
Risk101 allows users to specify their own strategies, and to group such trades by strategy-type for reporting purposes.
In addition, Risk101 allows the manager to either import his own betas from a trusted source such as Bloombergs, or the product can calculate them for him. These betas can then be applied to the security’s price-movement when stress-testing the portfolio.
ICB & GICS and UNFCCC Sectoral reporting
Risk101 caters for both the ICB (the old FTSE) classification standard, the GICS classification standard, developed by Standard & Poors, as well as the UNFCCC sectoral scopes and methodologies for carbon trading.
The product also allows you to create your own user-defined hierarchies if you wish.
Alternative funds, such as carbon-trading and clean-energy funds, have made extensive use of this user-defined facility to create their own sectors, and use these for reporting purposes.
The user-defined facility allows for a four-tiered sectoral hierarchy, in line with GICS standards.
Both Risk101 and Ozone3 allow you to drill up and down your selected sectoral hierarchy on an interactive basis.
Currency and country risk
In addition to calculating exposures to any single currency, Risk101 allows you to view your exposure to any country or market as well. This is particularly useful when a security is denominated in a currency which differs from that of its country of origin.