Risk Markets Technology Awards 2021: Performance attribution product

Kate Maryniak, Confluence
Kate Maryniak, Confluence
RiskMTA2021-inline

Performance attribution product of the year: Confluence

Revolution is a portfolio analytics platform offering performance, risk and compliance monitoring and reporting, integrated with market data using scalable cloud infrastructure. The Revolution Performance module manages and controls data, calculates results, and validates and distributes results for analysis and reporting. The Revolution Analytics module takes returns data produced by Revolution Performance and enables clients to run advanced performance and risk analytics, along with data extraction and reporting.

Performance module features include multiple security-level return calculation measures, flexible total time- and money-weighted return methodologies, multi-share class support, and aggregate portfolio performance calculations including target-weighted and market value-weighted calculations. The module offers a large number of configurable data checks and controls, including more than 100 control templates. Automated workflow processing includes dependency management, and allows a high degree of customisation so workflow can fit operational processes and structures. 

A fixed income attribution module supports detailed and transparent analysis of fixed income and multi-asset portfolios, decomposing returns into relevant components of yield curve, spread, carry, inflation and currency. Results are presented in graphical and tabular form across all portfolios. Fixed income exposure analysis provides a breakdown of impacts of changes to interest rate, credit spread and inflation exposures. Revolution provides standard index data and risk numbers, such as spreads, durations and yields, for benchmark and off-benchmark securities, although users can load or override these with their own data, as well as customise the hierarchy of relevant sources. 

The attribution and analytics module provides absolute and relative analyses against benchmarks across all applications, with comprehensive benchmark coverage and functionality, including target allocation, hurdle rate, carve-out and hedged benchmarks. Attribution analytics include bottom-up, top-down single and multilevel, and multicurrency attribution with currency overlay. Other functions include look-through for mutual funds, exchange-traded funds and benchmarks, and portfolio analysis incorporating equity fundamentals and valuation ratios.

Users can configure dashboards to combine results from different areas of Revolution and design analysis for various stakeholders, from front office to sales and marketing. Analyses can be delivered to target audiences through traditional reports or self-service direct access to the application. 

Revolution is delivered via the cloud, simplifying and shortening implementation while offering scalable performance across attribution and risk analytics. Data management issues and maintenance costs are reduced, and the need for in-house software maintenance is eliminated.

Judges said:

  • “Confluence’s extensively featured Revolution platform has taken several technology leaps, through cloud, parallelisation, data management, improved analytics, performance and flexible configurable dashboards.”
  • “The impressive Revolution platform ticks the boxes for performance attribution.”

Kate Maryniak, product manager, Revolution, Confluence, says:

“Confluence’s Revolution solution delivers comprehensive functionality across all areas of performance and attribution to the majority of global asset classes through scalable, cloud-native technology. Revolution fully integrates performance analytics, multi-asset and fixed income attribution, environmental, social and governance analytics, and reporting within one platform, offering extensive productivity gains to performance and middle-office teams. Performance teams have access to advanced data management and automation, intuitive workflows, visual and interactive issue investigations and resolution paths, allowing them to focus less on data management and calculation issues and more on what’s most important – providing analysis and insight to the front office and, ultimately, the clients.”

 

Read more articles from the Risk Markets Technology Awards 2021 winners’ review

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