Risk Management for Portfolios of Alternative Investments
eFront Risk Management offers advanced risk measurement and prediction capabilities
The eFront risk management module expands the capabilities of the FrontInvest platform by enabling users to accurately measure and predict various risks related to a portfolio of alternative investment fund holdings. Users can perform sophisticated top-down analyses to model portfolio construction strategies, as well as design synthetic portfolios. A wide range of parameters are available to use to understand the impact of various inputs.
With the Risk Management modules, users can:
- Analyze risk and return decomposition at both the fund and asset level. Results may be displayed in various formats including graphical charts with built-in filters.
- Stress test scenarios to improve the understanding of portfolio risk.
- Benchmark each investment proposal against a defined risk profile to understand its impact on the risk of the overall portfolio.
- Employ qualitative and quantitative scoring techniques to grade funds along various dimensions such as strategy, legal structure and expected lifetime.
- Analyze and plan future cash flows based on the different grades for each fund under review to leverage chartable measurements such as NPV, NPV at risk, Tail NPV, TVPI, Net IRR and Duration.