Moody's Analytics asset allocation solution helps establish, test, and run different asset allocations and identify risk-return efficient portfolios, either as part of a multi-asset fund proposition, or as part of a wealth management or institutional asset and liability management advisory business.
Analysis of different asset allocations and investment strategies against risk targets and investment objectives can be carried out using the asset classes available within the flexible modeling framework. Robust strategic asset allocation requires scenarios that give credible distributions and expected returns across a wide range of risk factors and asset classes, covering a range of projection horizons.
An optimum asset allocation strategy must consider the joint objectives of ensuring assets can meet liabilities, subject to some quantified risk tolerance, while maximizing the return generated from a particular portfolio of assets. Fundamental to establishing the right asset strategy is a set of forward-looking scenarios that simulate the future behavior of those assets and associated liabilities over the required time horizon. Real-world scenario modeling produces realistic asset distributions over a range of time horizons, asset classes, and economies, and it incorporates our extensive calibration research on real-world global asset behavior.
Leverage economic views and flexible calibration services
Any scenario generator is only as good as its calibration, its economic and capital market assumptions, and the parameterization of its models. We provide a comprehensive calibration service covering a wide range of economies and asset classes, which is ideal for use in portfolio construction and strategic asset allocation and reflects a stable or equilibrium view of asset risk premiums. A suite of calibration tools allows clients to customize their calibration, impose their own views, or apply stress and sensitivity calibrations. We also offer bespoke calibration services where we provide alternative calibrations directly to clients.
Model a comprehensive range of assets
This solution includes a flexible framework that enables the modeling of a comprehensive range of assets, including equities, nominal and real interest rates, corporate bonds, real estate, currencies, and hedge funds. With a range of model options included for the major risks and asset types, clients can choose the best model for their requirements considering the nature of their requirements and their sophistication levels.
Senior Director, Product Management
Phil leads the product management team focused on the application of financial risk modeling for investment, wealth management and pensions clients. Phil is a regular contributor to the pensions press and often speaks at industry events.
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