Wolfgang Männel’s Post

“As the product lead for MSCI, I am naturally biased, but I believe the AI is transforming at MSCI the analysis of risk. Using the improving power of generative AI, we can start to measure how events are propagating through markets. Traditional factor models and time series analyses do a great job of capturing correlation, but now we can begin to capture causation as well,” says San Francisco-based Jay D., Head of MSCI ONE, whose product management team helps provide actionable risk and performance insights for clients. The risk management function is evolving in ways that demand new infrastructure and technology to provide a 360-degree view of risk and informed investment decisions. This enables the risk management function to move from a back office control and compliance activity to a more strategic role. “Risk management must now be integrated into the end-to-end investment decision processes. This includes managing risks across multiple horizons, including macroeconomic trends to micro-level details and multiple spectrums, across market risk, credit risk, liquidity risk and inevitably climate risk,” says Sammi Shih-Yung H. Hsu, Head of Nordics Analytics Consultant at MSCI Inc., who sits in London, UK. “Outdated infrastructure may struggle to handle the complexities and the large amount of data in a timely manner,” she continues.

Separately Managed Accounts (SMAs) are fueling an increasingly growing trend in the digital assets space, fast-tracking institutional participation in the asset class. Why is this set up so popular? This format allows fast time to-market and tight risk controls, as allocators can turn on or off each strategy at their discretion. The ability to easily diversify across multiple managers/trading teams is also an attractive feature of SMAs. Easy, right? While the setup is relatively simple, running proper SMA manager due diligence and ongoing evaluation can be quite complex. How can an allocator verify the track record provided? How can s/he check the impact of a new strategy on the existing book? How can allocations be optimized to maximize risk-adjusted returns or target a certain net market exposure? How can performance, risk, and trading metrics be compared uniformly across market regimes to tell skill from luck? AI agents can significantly bolster SMA management, delivering exceptional alpha and risk management to the most demanding SMA allocators. In the article linked below, we discuss these topics in more detail, discussing how GenieAI's AI-powered Portfolio and Risk Management System has become the go-to software for SMA allocators of all kinds. If you're allocating to SMAs or are managing SMA strategies, reach out as I'd love to learn and share more! https://lnkd.in/ee8hBeQn

In today's volatile financial landscape, managing portfolio risks is more crucial than ever. Investors must navigate a maze of economic and geopolitical threats that can impact market stability. Traditional risk management techniques often fall short during turbulent times. Given the multitude of factors that can affect asset risk, AI techniques provide a natural and effective solution to improve investment performance and mitigate risk. So says Stefan Klauser, CEO and Co-Founder at Aisot Technologies in 'Managing Portfolio Risk: Using AI in Asset Management', a guest article. More at the link below. https://lnkd.in/eeNjpBJP #alternativeinvestments #ai #artificialintelligence #hedgefunds

AI in finance remains prone to occasional errors, and there is still a lot of room for improvement in communication between different systems. But solutions to these problems are in sight and the dream of self-driving portfolios is within reach – a synergistic AI achievement that could upend asset management and greatly alter the risk management landscape. Read more: https://lnkd.in/eVqRwmxK #riskmanagement #financialrisk #AI #assetmanagement

"A fascinating theoretical question is whether a market dominated by AI traders can eliminate the booms and busts, bubbles and crashes, endemic to human-run financial markets for all previous history. Some disruptions are clearly caused by inattention, irrationality and frictions, things AI should be able to avoid. But perhaps some are fundamental to dynamic, innovative economies, and will persist, even with constant detailed attention and continuous rational adjustments. Either way, though, financial markets will be fundamentally different."

Asset management is evolving rapidly, driven by innovation and solid management principles. From leveraging AI and data analytics to adopting ESG investing, innovation is reshaping how we optimize wealth and manage risks. Yet, true success lies in balancing agility with discipline—embracing change while staying rooted in ethical investing and risk management. I believe, this synergy is what drives growth, resilience, and client trust in dynamic markets. The future of asset management belongs to those who can adapt, innovate, and lead with purpose. #AssetManagement #Innovation #management #FinanceLeadership #SustainableInvesting #ESG #WealthManagement #RiskManagement #DigitalTransformation #AIinFinance #FutureOfFinance #FinancialInnovation #ResilientInvesting #DataDrivenDecisions #GrowthAndResilience #EthicalInvesting

Private Markets Evolution: Data Quality and Advanced Risk Tools Will Drive Multi-Asset Portfolio Success Private credit, semi-liquid funds, and democratized access are reshaping private markets, as highlighted in the below article. Innovations like unified portfolios, ETFs for private assets, and public-private funds aim to address scaling challenges and investor demands. However, data standardization, liquidity monitoring, and regulatory concerns remain critical hurdles. My Take The rise of multi-asset portfolios blending public and private markets demands change. Managing these portfolios requires high-quality data that is consistent, standardized, and accessible. Without this, scaling and decision-making will remain difficult. Advanced market risk tools are no longer optional. Scenario analysis, stress testing, liquidity analysis, VaR, and what-if analysis are essential for monitoring ex-ante risks. These tools provide critical insights into portfolio vulnerabilities. A "whole-of-fund" view is now vital. Siloed systems designed for individual asset classes create inefficiencies. Tradition market risk tools that focus on single asset classes cannot support the complexities of managing multi-asset portfolios effectively. Also, Centralized data management is key. It enables firms to unify their data and helps break down current 'asset-class' silos. This supports business intelligence (BI) and artificial intelligence (AI) tools, which rely on clean and integrated data. The time for action is now. Buyside firms must invest in advanced technology for data management and advanced market risk analytics. These steps will enhance risk oversight, improve portfolio insights, and ensure competitiveness. Delaying this transition risks falling behind in an evolving market landscape. #marketrisk #datamanagement #businessintelligence #ai

GenAI & Asset Management? How are firms transitioning? What's painful? Can it really be done without risk? Download this whitepaper to get the results of a recent survey of senior data management and operations officers, including front-office data chiefs and portfolio management staff at 17 buy-side firms: https://lnkd.in/grVeSxfT #GenAI #assetmanagement #risk #AI #survey #datamanagement

🤯 Did you know? Generative AI is about to revolutionize risk management at asset-management firms! Imagine cutting your workflow in half while increasing your accuracy and productivity. MSCI is rolling out cutting-edge GenAI products designed to do just that. 🚀 Here’s how GenAI will transform your day: - **Automated Analysis**: Get complex data insights without spending hours crunching numbers. - **Enhanced Predictions**: Say goodbye to guesswork with AI-driven forecast models. - **Risk Reduction**: Identify potential risks before they become problems, all in real-time! 🔍 But wait, there’s more! According to a recent report, firms using GenAI tools saw a **35% boost in productivity** and a significant reduction in error margins. “Thanks to MSCI’s GenAI products, our team is now more efficient and accurate, focusing on strategic tasks rather than manual data entry,” says one satisfied client. 🌟 Ready to supercharge your firm’s productivity with GenAI? Dive into the future of asset management by checking out the full scoop here: [MSCI: GenAI lets risk managers do their jobs - Digital Finance - DigFin](https://lnkd.in/g6-Q6SAT) Drop a comment below if you think this technology is the game-changer we've been waiting for! 💬👥

🔍 Exploring Tech-Driven Risk Models in Asset Management 🔍 I just read an insightful article on Citywire South Africa titled "The future of portfolios lies in tech-driven risk models," which delves into the evolving landscape of asset management and the critical role technology plays in building resilient portfolios. The article highlights how traditional risk assessment methods are giving way to AI-driven models that can better manage complexities in financial markets. As data volumes grow and market dynamics become more intricate, AI offers the ability to detect patterns and adapt strategies more effectively. This is where Axyon AI solutions really shine. By leveraging machine learning, our technology can analyze vast amounts of data to identify emerging risks and uncover new opportunities. Axyon AI's solutions are not just about crunching numbers; they're about bringing a nuanced understanding to portfolio management. Our models consider a broad range of variables, including market trends, macroeconomic indicators, and even investor sentiment, to provide more accurate risk assessments and smarter portfolio strategies. The integration of AI in asset management isn't just a trend—it's the future. It's about creating more resilient portfolios that can weather market volatility and deliver consistent returns. I'm excited to see how Axyon AI's technology continues to shape this evolving landscape. Check out the article for more insights on the shift towards tech-driven risk models in asset management. It's a must-read for anyone interested in the future of finance! #AI #Finance #AssetManagement #RiskModels #TechInnovation #AxyonAI #PortfolioManagement #Investments