BISAM, the leading provider of sophisticated digital solutions for performance, attribution, GIPS compliance and reporting, today announced that it has acquired FinAnalytica, a multi-asset class solution for market risk, portfolio construction and investment decision analytics for the buy-side.
BISAM’s acquisition of FinAnalytica responds to a growing demand for unified 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 environment where spikes in volatility are the ‘new normal,’ FinAnalytica stands out for its unique approach to tail risk and customizable factor models,” said William Haney, CEO, BISAM. “Their multi-asset risk analytics are a key differentiator and a very natural fit with BISAM’s existing capabilities.”
“The middle office has become more closely aligned with the front office in recent years, and so too has the risk budgeting process within the investment process,” said Boryana Racheva-Iotova, President, FinAnalytica. “The buy-side can clearly benefit from more efficient data management, which comes with having best-in class performance, attribution and risk from a single provider.”
FinAnalytica has been awarded six U.S. patents for their risk analysis, including methodologies for risk budgeting, a new approach for valuing derivatives, a portfolio construction technique using fat-tailed models, and an approach for determining which risk characteristics explain the behavior of risk factors. The firm has published over 20 research papers, including their Foundation Research Paper, Stable ETL Optimal Portfolios and Extreme Risk Management.