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- Single risk management interface for all levels of transparency
- Enhanced workflow for single and multi-factor exposure analysis
- Expanded asset class coverage
- New fund liquidity-adjusted measures for screening, risk and optimization

New York and London, 10 June 2010 – FinAnalytica, the leading provider of real world portfolio risk solutions for asset managers, hedge funds and multi-manager funds, today launched Version 3.2 of its Cognity risk management and portfolio allocation platform to offer risk measurement and reporting across all levels of transparency, including positions, exposures and returns.

The latest version of Cognity offers unified risk measurement and reporting by integrating inputs of manager-provided factor exposures with portfolio positions and manager returns. Portfolio managers and risk officers are able to decompose their risk in a single view regardless of the type or level of inputs. This new functionality is enhanced with a new rapid factor modelling process that combines single and multi-factor regression analytics including both linear and non-linear settings. Asset class coverage continues to expand for position-based analytics, including the addition of asset backed securities, total return swaps and the expansion of futures and futures options to include energy, precious metals and agriculture.

FinAnalytica CEO, David Merrill commented, “Transparency is king. Our multi-manager customers must be capable of responding to their investors with clear and accurate insights into the levels and sources of risk at all possible levels of information transparency. Our traditional asset management and hedge fund customers need an aggregate view of their risk across all types of portfolio strategies and asset classes. This release gives both groups the tools to make use of all available information, be it positions, exposures or returns, in a single analytical and reporting platform.”

Cognity 3.2 includes new liquidity-adjusted manager risk and performance measures. Taking fund lockup, notice period and redemption frequency inputs, Cognity calculates liquidity adjustment factors based on its downside ETL performance as well as classical MPT measures. Using these adjusted measures, assets are screened and ranked according to their liquidity-adjusted risk performance ratios. Cognity’s risk calculators apply the adjustment factors in the Monte Carlo simulation of VaR and ETL estimates. In the portfolio construction and rebalancing process, the adjustments are factored into the optimizer to generate efficient portfolios based not only on risk-reward appetite, but also on liquidity driven policy.

Boryana Racheva-Iotova, President, FinAnalytica added, “Transparency and liquidity go hand in hand. These latest additions demonstrate real transparency by providing investors with risk and performance measures adjusted for liquidity.”

 About FinAnalytica

FinAnalytica is a leading provider of real world portfolio and risk management solutions for quantitative analysts and portfolio managers. FinAnalytica's Cognity software suite incorporates the latest and most transparent advances in analytics, including comprehensive treatment of real world fat-tailed and skewed asset returns. FinAnalytica clients include leading fund of funds, hedge funds and asset management firms globally. For further information, please visit www.finanalytica.com.

Press Contacts
Cognito Europe
Adam Honeysett-Watts/Charlie Morrow
+44 (0)20 7438 1100

Cognito US
Damon Leavell/Caitlin Mitchell
+1 646 395 6300
FinAnalytica@cognitomedia.com