Investment Risk Management
How We Manage Investment Risk
Managing investment risk starts and ends with our portfolio managers, who look at both risk and return from every angle as they navigate today's complex investment landscape. Dedicated risk management specialists support our portfolio managers in conjunction with oversight committees and the application of sophisticated risk-management tools.
- Our portfolio managers:
- employ a fundamental, research-driven approach to managing assets.
- assess risk at each stage of the investment life-cycle—including investment selection, portfolio construction and ongoing portfolio evaluation.
- are backed by the strength and stability of our global organization, which enables them to maintain a long-term perspective.
- Our dedicated risk management specialists are:
- independent, providing robust analytics and critical, unbiased insight on each portfolio's risk profile.
- integrated into our global portfolio and trading network, co-located with portfolio managers around the world, to support our activities in markets where we invest.
- Our oversight committees focus on helping portfolio managers understand the most complex risk factors associated with:
- derivatives and complex securities: review all complex securities to identify risk factors prior to purchase.
- pricing and liquidity: analyze security valuations in emerging, frontier and other markets where liquidity may be limited.
- counterparty risks: assess risks posed by the banks, brokerages, and investment firms who act as trading partners.
- global product development: consider potential risk factors as part of new product development.
- Our portfolio teams also leverage centrally-supported, best in class platforms that provide additional insight, including:
- data analytics and modeling
- portfolio compliance
- trade monitoring and execution