Much like the rest of the Opturo platform, our Activ Attribution product offers clients with the flexibility they require to meet various business requirements. Our proprietary Enhanced Brinson model for decision attribution can provide your investment staff with a truly accurate framework to understand how their controllable investment decisions are driving alpha and risk.
While we believe our own version of Brinson is superior to the more widely used version in the industry, we also recognize there can be a time a place for meeting industry norms. Do your marketing people require a more traditional two step Brinson-based report? How about Fixed Income Decomposition? Factor model-based attribution for illiquid strategies like Private Equity or Infrastructure? Activ Attribution has it all covered.
Activ Attribution provides clients with the flexibility to select from a suite of best of breed models to meet their varied needs. Our proprietary Enhanced Brinson Fachler model empowers investment professionals to receive analytics which are based on how they actually make their investment decisions. If there is consistently applied logic and data to support it, our Activ can incorporate it into a decision tree- on the fly. Have a quant scoring method with multiple steps? Each step can be part of a decision tree and determine the alpha and risk generate by each. In combination with our Pulse Performance product, Activ can handle any asset type and strategy. Activ also provides the flexibility to select more traditional Brinson models, including a classic 2 step Brinson Beebower. Foreign exchange impact may be treated in a variety of ways, including decomposition or Karnosky Singer. Whether it be multi-asset or a traditional bottoms-up stock picking strategy, Activ offers a way to provide economically meaningful analytics.
Our Market Attribution models enable Fixed Income investors to determine the impacts of uncontrollable market movements on portfolios. Custom fixed income characteristics may be built on the fly and drive the decomposition of either nominal returns, or active returns relative to a selected benchmark. Are factor models part of your analytical arsenal? Activ may be integrated with any factor model, whether it is provided by a 3rd party vendor or something you’ve built in-house. Perhaps your multi-asset group prefers one vendor and your fixed income group prefers another? No problem! Our platform is flexible enough to incorporate the data and logic you require to make your analytical process and associated reporting meaningful.
Analyst Attribution is a specialized version of our proprietary Enhanced Brinson decision attribution model, which was developed to address the industry challenge of tracking and reporting upon the relative effectiveness of analyst ratings. Clients are able to use analyst ratings and have those ratings reflected in the security level weights in "paper portfolios." Attribution may be run relative to the assigned benchmark, and/or referencing the real world portfolio. The result is an accurate framework to assess the job performance of research analysts, which may be used to assist in performance reviews, compensation incentives, etc.
Activ Attribution may be deployed as either as part of a comprehensive solution, or it may be used tactically to compliment other large/integrated systems which may have gaps. In this era of ETF’s and passive products, active managers are under significant pressure to explain their performance, alpha and risk. Wouldn’t it be nice if you had a wide breadth of attribution models to select from which are responsive to both your internal needs, but also your general business requirements. Activ can provide your marketing people with the kinds of analytics they require, while also offering your investment professionals with analytics which truly reflect how they invest. Activ includes dedicated Analyst Attribution, which can help your firm track analyst recommendations and assess their skill level. So whether the role is broad or limited, Activ may be the answer to your attribution needs.
Some enterprises maintain legacy platforms upon which they are heavily invested, and for which the hurdle rate for change is very high. Opturo's modular architecture enables our analytics engines to be licensed in an a la carte fashion, and integrated within legacy platforms. For example, our performance and/or attribution engines could be licensed to replace legacy calculation engines which has trouble dealing with contemporary issues such as notional products and derivatives.