Quantify the Factors Adding to Volatility

As holders of large amounts of commercial property debt, pension funds seek out optimal solutions for managing the risk-return appetite of their institution.

The risk for investors and funds has long been measured using terms such as the Sharpe ratio, performance against benchmarks and, more recently, VaR (value-at-risk). Fund managers use Risk Integrated’s Specialized Finance System (SFS) to both run credit analyses on individual assets, and to run portfolio performance analyses for planning and structuring new investment strategies.

Risk Integrated has extended the SFS as an asset management software solution to quantify the factors adding to the volatility of returns while showing how adjusting the mix of assets, fee structures and cost structures can increase performance. The SFS is the best and most complete system on the market today for managing commercial real estate portfolios and provides scenario testing, portfolio structuring and Monte Carlo simulation. It allows asset managers to drill down from the highest portfolio level down to the detail of single leases.