Key benefits include:
Model the Risk of Multi-Asset Class Portfolios on One System - Analyze equity, fixed income, derivative, commodity, hedge fund, mutual fund, and REIT strategies in one system.
Understand Portfolio Performance - Understand return sources of portfolio or plan returns using factor-based, allocation-selection, and fixed income performance attribution methodologies. Identify how intended and unintended factor bets, and allocation-selection and yield curve positioning decisions are impacting performance.
Analyze Multiple Views of Risk - No single approach provides a complete view of risk. BarraOne provides a broad spectrum of risk management tools and methods to measure enterprise investment risk:
- Identify Drivers of Risk Using Multi-Factor Models - Gain insights into the portfolio structure and understand sources of risk through detailed factor model analysis. Capture complex cross-market and cross-asset class relationships while preserving local market detail.
 Compute Traditional Simulation-based VaR Analytics - Simulate the expected worst-case loss for a security or portfolio using Historical and Monte Carlo VaR. Compare VaR forecasts with fluctuations in market value given actual market conditions using VaR Backtesting.- Stress Test Portfolios Under Non-Normal Market Conditions - Capture non-linear return characteristics by revaluing portfolios using equity market, volatility, interest rate, credit spread, currency, and commodity shocks. Access over 60 predefined historical scenarios or create custom shocks to stress test portfolios against specific events. Stress tests can be applied as either correlated shocks, where assets are revalued using the factor relationships found in the Barra Integrated Model, or uncorrelated shocks where only assets directly impacted by the shocked market conditions are re-priced. Click here to find out more about our stress testing.
- Measure Standard Asset and Portfolio Analytics - Compute and group portfolio positions using standard fixed income and equity analytics such as durations, credit spreads, and GICS® sector exposures.
- Perform Interactive What-if Analysis - Modify portfolio constituents and weights interactively for analysis. Leverage tools such as Multiple Portfolio Comparison, Mean-Variance Optimizations, Trade Scenario Analysis, and Currency Hedging for more informed rebalancing and allocation decisions.
- Focus on the Analysis, Not the Data - No system data to download or manage. Over 55,000 equity securities in 59 markets, over 300,000 fixed income securities in 48 markets, bond and equity index futures, ETFs, and mutual funds, and global market conditions are included and automatically updated.
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