It is essential in today's volatile markets to be able to explain and control the market risk taken by a fund. Institutional grade software is not an option, it is an absolute necessity. Investors demand transparency, a secure infrastructure, a robust real-time environment and rigid internal controls to secure their investments.
Risk management is core to TFG.
We have built an integrated valuation and risk management platform where you can examine at any level of aggregation: portfolio, asset class, strategy or by your own filters:
As risk management moves beyond single rate sensitivity, Value at Risk become a key tool for the risk manager. TFG has built a leading edge, real-time Value at Risk calculation module. Historical simulation combined with various noise reduction techniques which makes TFG's Value at Risk a stable, reliable, comprehensible, and therefore, useful measurement for any collection of positions from single through to a collection of funds.
Within TFG, it is possible to combine the flexibility of stress testing with the power of simulation
present in Value at Risk by performing Factor Analysis. This allows you to monitor, again in real-time, the expected change in value for a set of positions if a move in a user defined were to occur. This powerful technique allows you to check whether you are market neutral, or attempt to predict what would happen if a shock occurs.