PerTrac RiskPlus allows the South African consultant to help clients anticipate black swan events.
Malaczynski Burn Risk Management, a South African investment consulting and risk management firm, has selected PerTrac RiskPlus to help its clients allocate assets and plan for severe risk events.
"Managing extreme event risk now dominates our discussions with pension funds and insurance companies," says Nick Malaczynski, co-founder of the firm. "In a world where ‘black swan' events are increasingly common, PerTrac RiskPlus allows us to develop portfolio strategies that match clients' needs for asset preservation and sufficient levels of income to cover beneficiaries."
The firm uses PerTrac RiskPlus, combined with proprietary methodology, to build custom-made, model portfolios. RiskPlus applies stress tests to calculate how the portfolios would perform if an extraordinary event were to occur again.
"If investors use only traditional risk analysis techniques and assumptions, they could find themselves ill-prepared should an unexpected event disrupt the markets," says Brendan Dolan, president of PerTrac. "By using more realistic assumptions about a fund's returns as well as more exhaustive methods of analysis, RiskPlus helps customers make smarter allocation decisions and better shield their fund portfolios from tail risks."