Axioma, the technology solutions provider in areas such as entreprise risk management, portfolio management and regulatory reporting, has launched a new UK equity risk model (AXUK4) to its Equity Factor Risk Model suite, as part of rolling out enhanced country specific content.
The AXUK4 model provides risk insight into more than 6,000 UK listed securities, including real estate investment trusts and exchange traded funds, with daily history from 1997 to facilitate portfolio construction, back testing, attribution and hedging.
Alessandro Michelini, managing director, Front Office Solutions, said: "Axioma's new United Kingdom equity risk model is an exceptional tool for better portfolio management. Now more than ever, investors need accurate and tailored models to properly capture the unique attributes of each market. Our new and enhanced UK Model meets those needs."
The AXUK4 model utilizes 13 market based and 15 fundamental style model descriptors, offering deeper insights into short and medium horizon risk exposures. Besides the expanded universe of securities covered, the model has also added style factors such as market intercept, dividend yield and profitability, and new industry classifications to more comprehensively represent the UK market.
Melissa Brown, head of Applied Research at Axioma, added: "With the Brexit decision looming, it is more important than ever for investment managers to have an accurate local risk model that captures the nuances of the UK market. But even in ‘normal' times, this model will be instrumental in helping investors to better understand and manage portfolio volatility."