Qontigo, an investment intelligence leader and provider of best-of-breed analytics and world-class indices, has announced the release of the Axioma Developed Markets ex-US Equity Factor Risk Model as part of its Equity Factor Risk Model Suite. This newly launched model allows investors to capture factor exposures and risks in developed markets without the weight of the US and results in superior alignment with investors’ unique strategies.
Read More: GlobalFintechSeries Interview with Veenerick Vos van Liempt, Founder, CEO at ZeroTouch Order and Pay
“Our new model is wired to work in parallel with how managers construct their portfolios,” says Alessandro Michelini, Managing Director of Front-Office Solutions at Qontigo. “The additional flexibility caters to unique mandates rather than offering an overarching view of risk from a global model.”
Read More: GlobalFintechSeries Interview with Brady Harris, CEO at Dwolla
The model covers 20,000 securities from 24 markets and includes 13 market-based and 15 fundamental style factors – estimated daily – to provide deeper insights into short and medium-horizon risk.
“By eliminating the skew caused by the dominance of the US market as well as characteristics unique to emerging markets, the new model offers managers the ability to build out strategies using a model that better reflects the risks of their investment mandates,” said Melissa Brown, Managing Director of Applied Research at Qontigo. “Managers will have better understanding of their factor exposures and be able to more accurately pinpoint portfolio risk and improve the risk-return tradeoff.”
