Asset owners and managers looking to better understand and control market risk
Historically the focus of investment management was on “performance, performance, performance”. However, stimulated perhaps by each setback in the market; in 1987, 1997, 2000, 2008 etc, there was a growing recognition that it was prudent to take account of the risk in an investment portfolio as, for any given level of performance, it would be preferable to achieve that with a lower level of downside potential.
With the markets becoming more professional, so that individual investors participated through managed funds rather than directly, it was also important to ensure that delegated investment powers were used as the customer intended. This meant not only that the level of risk taken should be consistent with representations made, but also that the investment strategy should follow a given mandate.
In Europe, the 2008 crisis also lead to a regulatory response, setting standards in relation to risk management and encouraging the independence of the risk management function and the integration of risk awareness into the investment process.
EMA’s market risk analysis systems are designed to meet these developing needs and are used by institutions engaged in the management or oversight of investment portfolios and by firms that support them in relation to those activities.
This includes independent asset, hedge and wealth managers, teams carrying out that function that are subsidiaries of banks or insurance companies, plus consultants and related service providers.
Geographically, clients are based in the UK, Europe, Africa, Middle East and Asia.