Our services Quantitative solutions
 

Quantitative solutions

MJ Hudson quantitative solutions deliver risk and regulatory risk reporting via our proprietary online portal, RiskMonitor.

Outdated investment risk processes are costly, inefficient and better served by an automated solution. We provide an end-to-end service, always designed with automation in mind.

Our reports are modular and customisable; we build each report template to suit your exact needs. MJ Hudson quantitative solutions cover the broadest range of asset classes and have the flexibility to white label reports.

Our online portal, RiskMonitor is available as a SaaS (Software as a Service) tool giving you maximum oversight, flexibility and transparency, while addressing substance challenges.

We satisfy requirements for financial regulations including: AIFMD, PRIIPs, CP86, CSSF 18/698 and ESMA34-39-897 (liquidity stress testing) and our regulatory offering includes: Annex IV and PRIIPs KIDs.

Explore our full suite of services below.

The quality of the tailored reports provided by MJ Hudson quantitative solutions, in terms of content and data feeding process, is top level.
Romain Pidoux, Head of Risk Management at NS Partners
Who we work with

What we do

Investment restriction monitoring

Customisable risk compliance reports designed for portfolios comprised of level 1 and level 2 assets. This solution, known as RiskMonitor® Compliance, addresses demands for clear, flexible and transparent reporting that meets the needs of multiple stakeholders. COOs and boards benefit from concise reporting while risk managers and compliance officers benefit from greater automation.

Key features:

  • 100+ existing investment restrictions (including UCITS)
  • Gross and commitment leverage and concentration limits
  • ‘Unpermitted asset’ rules applicable to an entire asset-class
  • Customer restrictions such as ESG criteria or other client specific risk criteria
  • Aggregate risk of distinct portfolios or accounts into a single report
  • Wide coverage of 18 distinct asset classes supported by distinct risk and analytical methods
  • Illiquid asset cover including structured products and OTC derivatives

Typical clients include: asset managers, fund administrators, ManCos and ACDs.

Investment risk reporting

The RiskMonitor® Performance solution aims to enhance the fiduciary-investment manager relationship rather than alter it. The solution identifies performance, liquidity and fee details for fund of funds, as well as factor analysis, in simple fact sheet style reports for funds. It offers a simple yet flexible risk monitoring solution based on the provision of an independent and objective investment reporting framework. We also offer consulting support to resolve issues such as new policy review and manager selection.

Key features:

  • Simple traffic light outcome to evaluate investment risk
  • Management reporting across all accounts to complement account-level reporting
  • Reporting for any periodicity (annual through to daily) and all asset classes
  • Analysis can be based solely on historical returns or extend to position-level data
  • Wide range of benchmarks including “cash+” performance targets
  • Coverage of managed accounts as well as investment funds
  • Account aggregation functionality
  • Advances optimisation & efficiency analysis

Typical clients include: wealth managers, asset managers and fund services.

Liquidity stress testing

The RiskMonitor® Liquidity solution addresses regulatory and governance concerns on asset liquidity and fund’s ability to satisfy redemption terms. Leveraging the RiskMonitor portal and data integration with a wide range of fund administrators to incorporate fund shareholder as well as asset details.

Additional consultancy support can be provided to review and develop liquidity management policies, including the provision of ongoing reporting and liquidity stress testing. This solution employs a range of sophisticated modelling techniques across multiple asset classes, and is relied on by leading alternative asset managers and fund services businesses.

Key features:

  • Addresses ESMA LST guidelines (ESMA34-39-897)
  • Board-friendly reporting
  • Sophisticated asset liquidity metrics including modelling for bond instrument and classifications for CIU (third party funds)
  • Market impact analysis
  • Shareholder and subscription / redemption analytics
  • Option to choose between ‘waterfall’ and ‘top-slicing’ approaches
  • Liquidity scenario event and post-event compliance analysis
  • Complementary to Annex IV managed service

Typical clients include: ManCos, ACDs, fund administrators and asset managers (hedge funds, UCITS).

Private asset risk reporting

A specialist end to end Managed Software as a Service (MSaaS) for private asset funds based on a powerful and intuitive cash-flow model providing ‘fit for purpose’ risk analytics that incorporate and aggregate asset-specific expectations and realized cash flows. The ValuSim tool serves PE and RE funds and family offices by demonstrating independent oversight and performance and risk appraisal.

Key features:

  • High presentation quality
  • Customisable reporting suitable for key stakeholders and investor reporting
  • Comprehensive range of private asset investment restrictions to demonstrate prospectus and risk compliance
  • Connectivity to leading fund administrators
  • Scenario and stress testing solution
  • DCF based valuation appraisal

Typical clients include: PE and RE asset managers and fund services.

Regulatory reporting (UCITS, Annex IV, PRIIPs)

We provide a managed service solution for Annex IV filings, UCITS reporting and PRIIPs KIDs, EMTs and EPTs altogether known as RiskMonitor® RegTech. We support investment firms subject to EU and UK regulations by providing the risk metrics, data and reports to meet the regulatory risk reporting requirements of UCITS, PRIIPs and the AIFM.

Managed Annex IV:

  • XML filings to meet any EU regulatory format
  • Solution for any asset type including private equity and real estate
  • Provision of full filing or delivery of specific risk inputs including: VaR, Greek
  • Stress-tests and liquidity

UCITS reporting:

  • UCITS restriction monitoring
  • Absolute VaR – UCITS compliant
  • Global exposure
  • Exposure by counterparty
  • Liquidity analysis

PRIIPs/EMT/EPT:

  • Meets requirements of traditional and liquid alternatives (category 2 PRIIPs)
  • Cash flow model supports performance scenarios or category 1 PRIIPs
  • High presentation quality KIDs with bespoke clien specific templates
  • Transparency on calculations and supporting materials to enable board appraisal and evaluation
  • Ongoing monitoring and transmission to fund platforms

Typical clients include: ManCos, ACDs, fund administrators and asset managers (hedge funds, UCITS).

For more regulatory compliance services, see Regulatory solutions.

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Our thinking

In private equity, consistency of returns (and a manager’s ability to impact this through risk mitigation) is a key evaluation metric, but backwards-looking analysis doesn’t tell the full story. To find out which methodologies can provide deeper insight, download this whitepaper.
White paper
Risk is what you make out of it … the relevance of ex-ante versus ex-post risk in private equity
“Past performance is not an indicator of future returns”. Indeed, traditional measures of private equity performance cannot predict the future. Thankfully, the MJ Hudson PERACS Alpha is a much more reliable Oracle. To find out how it works (and why other approaches don’t), download this whitepaper.
White paper
A new perspective on returns persistence in private equity
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Varenne Capital
Fund managers
Business development contact:
Varenne Capital
Varenne Capital
ESMA / Liquidity stress testing
Varenne Capital Partners is a process-driven, global investment manager whose purpose is to deliver superior long-term returns with the minimum necessary risk-taking. They strive to achieve this goal by combining complementary investment frameworks – Long Equity, Short Equity, Merger Arbitrage and Tail Risk Hedging – in a single strategy.
The new ESMA liquidity stress testing guidelines came into effect at a challenging time for the funds industry due to the on-going impact of COVID-19 on operations and financial markets. Through this partnership with MJ Hudson Quantitative Solutions, INDOS is now able to facilitate independent liquidity stress testing for its clients in an efficient way, reducing their operational burden and enabling them to demonstrate compliance with the new requirements.
Bill Prew, CEO of INDOS Financial
NS Partners
Fund managers
Business development contact:
NS Partners
NS Partners
Liquidity stress testing reports / RiskMonitor / UCITS & AIFs
Founded in 1964, NS PARTNERS (formerly Notz Stucki) is now one of the largest independent investment management groups in Switzerland and in Europe. In its 57 years, NS PARTNERS has developed unrivalled expertise in selecting the best fund managers from around the world and combining them to build top performing and resilient portfolios. NS PARTNERS Group manages or administers some CHF 11 billion in assets across three highly complementary branches: - Wealth Management: Discretionary and advisory management - Asset Management: NS Funds and investment solutions - ManCo: Fund engineering and dedicated fund services
I really appreciate working with the MJ Hudson Quantitative Solutions team – they are very responsive and flexible to our needs. The quality of the tailored reports provided, in terms of content and data feeding process, is top level. Their flexibility, in my opinion, is due to their experienced team using MATLAB to develop their proprietary reporting and calculation tools. They demonstrate a practical approach and are always on time delivering the reports.
Romain Pidoux, Head of Risk Management at NS Partners
Empiric Capital
Fund managers
Business development contact:
Empiric Capital
Louvre Trust
Family offices, foundations, and private wealth
Business development contact:
Louvre Trust
True Potential
Corporates
Business development contact:
True Potential
SLIB
Corporates
Business development contact:
SLIB
With best-in-class risk algorithms and API technology, MJ Hudson represents an ideal partner to bring our innovative and much needed solution to market.
Philippe Cognet, CEO, SLIB
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