- Risk & Asset Management Studio
Torino Risk and Asset Management Studio (RAMS) offers a range of highly sophisticated tools to support financial professionals at every level. From portfolio optimization to risk management, asset allocation and financial planning, TTG empowers its clients to make the most of the market.
RAMS is a modern fully integrated solution to meet the diverse demands of the finance industry and provide high value client service with easy to use front end. RAMS provides automated processing of the transaction life cycle providing a straight through processing Framework. RAMS provides centralized management of investment strategies to Portfolio Managers, Risk Managers, Private Bankers and Analysts.
To achieve results, portfolio managers need to understand the potential impact of investment choices. With TTG’s sophisticated calculation engine and applications, portfolio managers have complete risk measurement and analysis tools to help them understand their broad range of considerations, whether they’re looking at a group of portfolios or a single financial instrument.
Several methodologies are available so that the organisation that is our partner has a choice:
- Analytical mono and multi-factor methodology with delta approximation.
- Analytical method with full covariance matrix.
- Monte-Carlo Full evaluation method.
- Historical Simulation method.
- Portfolio Optimisation & Rebalancing
The RAMS suite offers a wide range of optimization models to tackle the challenge of Asset Allocation and portfolio selection (stock picking). Building on classic mean/variance models, RAMS allows users a flexible approach, where they can focus on specific factors and minimize risk. RAMS includes sophisticated and cutting-edge optimization models, such as the Black/Litterman model or the minimization of CVaR.
The following functions are typically enabled in order to manage optimal asset allocations for cash flows, liquidity requirements and tax-aware optimisation. Advanced analytical tools cover:
- Buy/Sell recommendations.
- Individual risk analysis.
- Trend direction and strength.
- Performance analysis.
- Risk return ratios
Some of the key functions of Portfolio Rebalancing are:
- Portfolio rebalancing is used for aligning a portfolio (or a set of portfolios) to its model portfolio.
- The user can define the model portfolio at any degree of precision in its asset classes, from very virtual asset portfolios of asset allocation up to very practical, investeable portfolio made of tradable assets.
- The model portfolio represents the appropriate customer’s asset allocation that can be defined to suitable RAMS Tools for customer’s profiling that manage to analyze risk aversion and financial objectives.
- The degree of alignment with respect to the Model portfolio is measured through the percentage deviation from the model’s positions.
- Positions are defined according to rules that can be set at the organisation and user level.
- The rebalancing process, taking into account all constraints on the portfolio and its operation range, generates fully practical orders that can be sent to the market or can be just reported as advices without any automaic execution.
- The securities that can be included in the rebalanced portfolio can stem from the model portfolio, from the asset’s registry, from market and core lists and from dynamic lists called implementation rules
The performance module by TTG allows in a powerful and efficient way to implement the methodologies and the representation schemes more suitable to one’s own system. The program, which is transaction based, uses a number of calculation models, including Time Weighted, Money Weighted and Internal Rate of Return, and of performance parameters, which apply to every level of portfolio, manager, area aggregation, with the possibility of comparing with the benchmark. This tool allows an analysis with the factorization up to the detail of the performance of a single asset.
Some of the highlights of TTG's performance calculation and attribution system:
- Bottom up approach.
- International presentation and calculation standards support. (GIPS or local equivalent like SPPS).
- The calculation methodology is based on the GIPS 2010 standard with use of the Carino method for multi-period linking considering both arithmetic and geometric return composition.
- Possibility of running batch performance for calculation for predefined decomposition and period parameters. (eg. Year To Date or Last Month by country and sector).
- Large choice of benchmark comparison functions.
- Pricing & Valuation
TORINO-RAMS PRICING-Application is the TTG tool devoted to evaluate complex/exotic derivatives, not-priced, structured products or simply illiquid bonds .The tool allows following the entire process from the upload of the instrument to the final pricing, through the evaluation of implicitcomponents, risk components and final reporting.
- Middle/Back Office
- Risk Management
The process is completely engineered: minimize manual intervention by reducing operational risks and guarantee reliability of operation
Maximum traceability : provides step of verification and validation, data storage and logging guaranteeing reproducibility of results for auditing and real-time error alerting
Modularity and Configurability: allows to customize the solution, its scalability and an immediate answer to market innovation
Integrability with customer’s systems: provides IN/OUT fluxes from customer systems guaranteeing the maintenance of procedures and processes already consolidated in the institution
Pricing approach based on financial decomposition: provides a library of pricing functions of components and derive structured synthetic products values. This guarantees the pricing of even very complex securities and managing rapid exploitation of new structures
Constant alignment to the market: introduces calibration parameters of pricing models in order to guarantee a theoretical price always aligned to the market