The Windham Portfolio Advisor® is a technology platform for efficient portfolio construction and sophisticated risk management. It has been developed for the most sophisticated institutional investors-including plan sponsors, endowments, foundations, investment managers, investment consultants, and brokerage firms-to make informed asset allocation decisions.
The Windham Portfolio Advisor® is available with multiple modules including the following:
Return and Risk Estimation:
The Windham Portfolio Advisor® has multiple return and risk forecasting models to assist in the development of asset class assumptions. Returns can be estimated using historical, equilibrium, implied, and Bayesian methods. Volatility and correlation can be estimated using historical periods, turbulent periods, or periods of user-specified asset price movements, enabling investors to identify portfolios that are more resilient to these market conditions and to stress-test investment strategies.
Portfolio Construction:
Investors have different objectives that may change over time. The Windham Portfolio Advisor® has several optimization techniques to meet this challenge. Investors can perform multi-goal optimizations to identify efficient portfolios based on both absolute and relative performance objectives, producing a three-dimensional efficient surface. This multi-goal optimization is ideal for investors faced with liabilities and performance benchmarks.
Some investors face yet another challenge when forming portfolios. Standard portfolio optimization programs assume that returns are normally distributed, when, in fact, many assets and funds display non-normal attributes. The Windham Portfolio Advisor® overcomes these limitations with its full-scale optimization technology. This approach implicitly takes into account all of the features of a return sample, including skewness, kurtosis, and other peculiarities of the distribution, and it accommodates a wide range of realistic assumptions about investor preferences. Full-scale optimization is ideal for allocating to portfolios of alternative assets.
Portfolio Evaluation:
It is imperative to understand the risks to which a portfolio is exposed. No single risk measure completely captures the multifaceted nature of risk. This is why the Windham Portfolio Advisor® has an extensive collection of risk measures to give an investor the best understanding of exposure to loss and potential for underperformance. Risk is estimated both analytically and by simulation. Some measures of risk include:
- End Of Period Probability of Loss and VAR
- Continuous Probability of Loss and VAR
- Risk Budget
- Skewness, Kurtosis
- Asset Class VAR Sensitivities
Cash Flow Simulation:
This module enables investors to analyze a portfolio throughout a specified time period while considering contributions and disbursements. The powerful simulator generates the multitude of possible outcomes and estimates probabilities for achieving desired outcomes.
Reporting:
The report module is used to generate comprehensive portfolio reports for presentation or delivery to clients. The content can be customized to present the relevant portfolio findings.
|
