Q&A with BISAM CEO, William Haney
Earlier today, BISAM announced its acquisition of FinAnalytica, the award-winning multi-asset class solution for market risk, portfolio construction and investment decision analytics.
BISAM’s acquisition of FinAnalytica responds to a growing buy-side demand for a more unified view of performance and risk. This market requirement is driven by several key industry trends including a shift toward risk-factor based allocation approaches, pressure from asset owners for a deeper understanding of both risk and performance profiles, and the race for higher performing investment strategies.
In today’s blog post, BISAM CEO William Haney explains why the company selected FinAnalytica, and outlines some of the key benefits our customers and prospects can expect from the acquisition.
Erika Alter: Why FinAnalytica?
William Haney: BISAM selected FinAnalytica for the quality and depth of its risk research, including a groundbreaking approach to understanding volatility and tail events – a “must have” now that spikes in volatility have become the new normal. Further, in my very early discussions with Boryana Racheva-Iotova, FinAnalytica’s founder and president, it became clear that BISAM and FinAnalytica share very similar visions for delivering the best products and services to the market. We see risk and performance as being two sides of the same coin, and recognize that bringing our offerings together will enable us to answer the market’s need for higher value analytics and tools in support of more innovative, differentiated and higher performing investment strategies.
EA: How Will Our Customers and Prospects Benefit?
WH: The need for robust risk analytics are more essential than ever when it comes to understanding and driving performance of investment portfolios. In general, the middle office has become more closely aligned with the front office in recent years, and so too have their risk and performance processes in support of more differentiated investment strategies. BISAM and FinAnalytica customers alike can clearly benefit from the efficiencies of having best-in class performance, attribution and risk from a single provider.
EA: What Can B-One and/or Cognity Users Expect in Terms of a Joint Solution?
WH: While Cognity and B-One will continue to be offered as stand-alone platforms there are immediate benefits that users will realize - which I outlined yesterday during my interview with Buy Side Technology:
- Integrated factor-based risk and performance attribution: our clients will be able to slice and dice their portfolios in terms of both performance contribution and risk contribution from the same set of multi-asset class risk factors, starting with equity and fixed income. This offers great value as investors and asset managers look for a common approach to understanding performance and risk, and measuring against a single set of factors in the same dimension.
- We also plan to introduce FinAnalytica’s advanced fat tail modeling into the BISAM B-One platform – passing data on both tail risk and sensitivities into B-One so that users can take advantage of the more advanced risk analytics that the Cognity platform provides.
Both Cognity and B-One, each award-winning in their respective domains, offer both performance and risk analytics today – going forward we’ll be able to co-mingle the most sophisticated results for our largest, most complex clients.
To our readers: to request a meeting and learn more, please visit www.bisam.com/risk, contact your BISAM account manager, or send an inquiry to firstname.lastname@example.org.
Watch our related video to learn more