Waters Rankings 2024: Best market risk solution provider (highly commended)—FactSet

Typical users

Buy-side firms, including institutional asset managers, asset owners, insurers and hedge funds across the globe.

Overview  

FactSet’s configurable multi-asset class risk management solutions allow users to transform everyday analysis into valuable decision-drivers. The firm offers a flexible and scalable multi-asset class risk management platform that combines analytics, broad asset coverage and an intuitive interface. Clients can use a single platform to manage portfolio performance, attribution, risk, research, and construction across the front and middle office. FactSet offers a variety of risk models, each validated by research and testing, to suit various investment goals and regulatory needs. It also provides portfolio services that handle data reconciliation, management, and integration, ensuring accurate and timely portfolio and security information.

Key technologies  

FactSet uses advanced technologies to deliver reliable, flexible, and scalable analytics across the portfolio lifecycle. Its risk management solutions are:

• Interoperable: They integrate with FactSet’s data, research, and portfolio analysis tools, and other third-party systems and data.
• Transparent: They provide visibility into the data, assumptions, and methods of its risk models and calculations.
• STP-enabled: They automate data, reconciliation, reporting, and distribution workflows.
• Cloud-based and SaaS-hosted: They offer fast and secure access from any device.
• Time efficient: They enable rapid implementation, customization and innovation to enable clients to respond quickly to market and regulatory changes.

Key differentiators

• Integration of risk models and workflows within FactSet’s Portfolio Analytics suite
• Multi-asset class factor modelling approaches
• Integration of third-party risk models and FactSet’s proprietary models
• Experienced data integration and portfolio services teams
• Multi-tiered approach to provide full position transparency
• Multiple methods to analyze market risk for the multi-asset class universe
• Integrated market and economic data
• Ability to conduct factor stress testing and extreme-event stress testing
• Portfolio construction capabilities to create and share optimal portfolios across applications, the trade desk or with other teams

Future roadmap

• FactSet constantly releases new models and features into the platform with no set schedule. The platform is cloud-only, meaning all clients get access to new versions, releases and models at the same time without needing to upgrade software.
• Recent focus has been around enhanced core fixed-income factors plus further expansion into high-yield sectors such as leveraged loans, collateralized loan obligations and private credit.
• FactSet is also launching a full re-evaluation multi-asset class (FVMAC) model to complement the existing factor models for clients holding extensive derivatives or other non-linear securities such as residential mortgage-backed securities (RMBS).