Barra's portfolio analytics - Adding value to your investment process
Developing and demonstrating a consistent and replicable investment approach is made easier with Barra's portfolio analytics. Using the Barra risk breakdown and factor-based performance attribution analysis, you can show that risk and returns are coming from your stock selection expertise, rather than being market driven, and then apply the same framework to your other portfolios. For certain global and regional models, a Brinson-type breakdown may help you with a sector or region allocation view.
Whether your portfolio over- or underperforms, Barra's portfolio analytics shows you what is driving performance and verify that this is in line with your investment strategy. For additional insight, returns can be broken down into company specific and systematic (market driven) returns and, further still, into intuitive fundamental categories to discover any unintended bets at the portfolio level.
More you can do:
- Identify exposures to factors you may not have expected
- Uncover unexpected short-term correlations between stocks and the impact on your portfolio
- Simulate impacts of a proposed trade on your portfolio
- Verify your conviction on top/bottom opportunities
- Demonstrate consistency of style and a repeatable process
