Risk Management
Risk Management
Portfolio Management Committee
Overall monitoring of market and fund-specific risk factors
Regular checks with internal regulation and portfolio management risks
Risk Management Team
Internal systems for Risk Management
Order Management and Fund Accounting systems in place for all functionalities
Risk Management System includes AITAS-Trust Accounting System, AITAS-BIGS (Fund Evaluation and Analysis System) and AITAS-Ai Trader (Trading System).
Available functionalities include scenario analysis of VaR upon specific trades or market changes, pre-trade compliance checks for funds overview and performance evaluation tools, including key ratios (Sharpe, Jensen, Treynor)
Risk Management Process
Risk Assessment
- Establishment and continual review of internal risk measures and relevant guidelines
- Investment constraints and key triggers (stop-loss limits) - Tailored risk controls of each fund in response to differing strategies and assets invested (asset class volatilities and different product mechanisms)
- 'Chinese Wall' between Porfolio Management & Supporting divisions (Compliance, Risk, Operations, etc.)
Risk measures and processes registered in AITAS order management and accounting systems
Risk Monitoring
- Compliance with investment constraints and targets
- credit ratings, asset class weights
- derivative usage, short-selling, cash limits - Compliance with market-related tests
- tracking error relative to benchmarks, max. drawdowns. - Fund performance analysis and attributions
- Alignment between investment guidelines and portfolio management activities
Systematic monitoring and alert systems in AITAS platforms
Risk Resolution
- Identification of regulatory & guideline breaches if any
- Systematic approach to immediate resolution of any breaches
- Record of any issues and breaches for compliance and performance evaluation
Multi-layered approach to risk prevention and resolution
