MPI Adds Advanced Risk Functionality to its Flagship Stylus Pro Fund Analysis Software

New proxy-handling features also allow users to extend analysis for shorter-lived investment products and portfolios

July 23, 2018

Summit, NJ/London/Tokyo (July 23, 2018) ― Markov Processes International (MPI), a leading provider of investment research, technology, analytics and indices for the global investment management industry, today announced the release of Stylus Pro 11.4, the latest version of its flagship investment analytics software.

The new release introduces the ability to perform historical regime analysis and stress testing, as well as hypothetical scenario analysis, or “what-if” shocks, on investment products and portfolios. It also introduces proxy-handling capabilities that enable users to extend analysis for shorter-lived funds.

MPI’s returns-based risk offering is highly focused on meeting the needs of its core clients—fund selectors and fund sellers. The firm’s industry-leading quantitative analysis models help deliver precise, flexible risk capabilities with speed and cost efficiency.

Regime analysis enables investment professionals—from advisors to institutional investors—to achieve deeper insight into how a fund might perform in various market conditions, such as high market volatility or rising rates. Historical stress tests enable users to analyze fund performance during specific market events, like the Credit Crisis or dot-com crash. Scenario analysis enables users to perform theoretical shocks to a fund or portfolio to identify potential risks in hypothetical market conditions.

“While past performance is never a guarantee of future results, there are significant insights to be gleaned from analyzing a fund’s potential behavior during certain market and economic conditions or historical events,” said Michael Markov, Co-Founder and CEO of MPI. “With Stylus Pro 11.4, we are aiming to offer our clients a more effective and impactful way of identifying, analyzing and presenting those risk characteristics.”

To support new features in Stylus Pro, MPI has also made several enhancements to Stylus Workspace, the quantitative research framework within Stylus Pro, which was designed to add precision, speed and clarity to fund analysis. Enhancements include the addition of a library of MPI-created regime models and historical events as well as preassigned fund proxies to automatically extend the histories of shorter-lived products.

Advanced features in Stylus Pro 11.4 offer users the flexibility to create their own regimes and scenarios to isolate nearly any condition they can think of. Users can also assign their own custom proxies to tailor investment research, analysis and reporting to meet their specific needs.

“Whether it is to assist with investment product development, asset allocation, portfolio construction or product selection, our goal is to provide deeper insight into fund risk in any market environment,” added Markov. “This release is an important step in delivering that to our clients, and we are already working on building out the next set of powerful features in Stylus Pro.”