AFTAs 2014: Best Risk Management Initiative—Janus Capital

This year it was Janus Capital, with its eQuantum Risk Platform, edging past BNY Mellon, MFS Investment Management, and State Street to win the best risk management initiative award.

Enrique Chiang, chief investment officer of equities and asset allocation at Janus, describes eQuantum as a “game-changer,” as it allows the firm to improve its ability to stabilize and grow its equity franchises and risk management operations. Janus says the product allows portfolio managers to manage their portfolios with their eyes wide open, looking ahead, rather than out the rear window.

The platform serves as a risk, analytics, and research solution that is used by Janus’ risk team, its portfolio managers, and its research analysts. It is designed to improve collaborative efforts between analysts and portfolio managers by increasing the efficiency of proprietary fundamental research and risk measurement information exchange.

According to Janus, its Investment Policy Statement (IPS) dashboard allows portfolio managers to keep track of where they stand in terms of the promises made to their clients. ProForma provides “look-before-you-leap” functionality to the firm’s portfolio managers by helping them understand the impact to their portfolios on an individual or series of trades from a Barra Risk and Morningstar-style box perspective. The Executive Dashboard is a single-glance view of the risk profile of all accounts managed by portfolio managers for Dick Weil, Janus’ CEO.

Other functionality includes a fully integrated coverage module that enables analysts to maintain buy/sell ratings, upload models, read and send research notes, and maintain estimates on all the companies they cover. The Company Tear Sheet is a consolidated view of Janus’ research material, ownership across Janus portfolios, performance, fundamentals, and estimates of every security Janus trades.

As markets become more fragmented and global, as firms look to enter into new asset classes, and as the speed of trading continues to increase, firms will need to be able to adjust and evolve. For Janus, eQuantum fits the bill.

The eQuantum platform, which is built on the Microsoft .Net framework, is deployed as a desktop application on the machines  of every equity investment professional at the firm.

As markets become more fragmented and global, as firms look to enter into new asset classes, and as the speed of trading continues to increase, firms will need to be able to adjust and evolve. For Janus, eQuantum fits the bill.