Our proprietary TEAM (Track, Evaluate, Analyze and Management) system is used to analyze the structure of our portfolios and their inherent risks relative to the benchmark index and for compliance with investment guidelines. The risks we analyze include:
- Credit and default
- Interest rate
- Yield curve risk
TEAM decomposes portfolios by sector and security weightings, maturity, and duration structures, to analyze yield curve and interest rate risk versus indices, coupon distribution, and ratings categories both on an absolute basis and relative to the benchmark. Portfolios are managed to a tight duration band as we do not believe market timing to be a highly predictable way of addition value over the long run.
TEAM's risk management capabilities are further enhanced by the compliance module and integrated with a “what-if” module, which allows us to manage risk within the bounds of our client's customized compliance requirement. The “what-if” allows portfolio managers to take into consideration customized client investment guidelines, alternative benchmarks, recalculated analytics and more, before we actually execute. Accordingly, all purchase and sell decisions are only executed after full consideration within a portfolio and risk management context.
TEAM is fully integrated with Advent Axys, our portfolio accounting and performance calculation system and with Bloomberg Financial Systems for up to date analytical information.
As a firm, we have a dedicated team of client guideline compliance and risk management analysts who meets with the investment professionals as part of our portfolio review and control process.