Expansion Marks Continued Growth of Axioma Fixed Income Suite(Qontigo)
Qontigo, an investment intelligence leader and provider of best-of-breed analytics and world-class indices, has announced the integration of the Axioma Factor-based Fixed Income Risk Model in their enterprise portfolio risk management system, Axioma Risk. The cross-sectional style-based model, which is also available in a flat file format, is powered by proprietary methodology and allows intuitive risk and performance attribution analysis, as well as robust portfolio construction aligned with both passive and active strategies.
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Axioma Risk offers broad pricing and flexible analytics capabilities across multi-asset class portfolios with the ability to run linear or full repricing on a single, cloud-based platform.
Style-oriented fixed income factor investing has grown in popularity and according to Greenwich Associates, 70% of investment managers see large opportunities for fixed income factor investing over the next few years. However, owing to the lack of quality and consistency of fixed income data, bringing factor investing to fixed income has previously been a challenge, resulting in models with thin rules-based sector factors, strong sensitivity to ratings migration and volatility estimates dominated by noisy data.
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“Fixed income data has historically been frustrating, especially for investors that have more experience in equities. A big part of the problem is that data must be transformed in order to prove useful in support of a style-based approach. The advancements in fixed income trading support tools have made managing and transforming fixed income data more viable and as a result there’s finally an opportunity to meet the growing demand to develop a systematic analog to equity factor investing in bond markets,” said Kevin McPartland, Managing Director at Greenwich Associates. “Enabling sophisticated, flexible – and consistent – risk analysis is key for developing innovative strategies and rigorous portfolio management.”
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