Thematic Intelligence Generates Alpha in an Index Tracking Strategy
How Raise Partner and CID collaborate to help asset managers create high-performing, low-risk thematic investment funds.
At a glance
Raise Partner is a leading independent specialist in investment risk analysis and portfolio optimisation software.
They deliver risk/ESG smart analytics and optimisation models to asset servicers, asset managers, wealth managers, insurers, investment bankers, sales, and advisors.
By leveraging CID’s Thematic Intelligence exposure scores as an additional input to their portfolio optimisation solution, Raise Partner has been able to build higher performing thematic portfolios for investors.
High thematic performance, at low risk.
Optimising a thematic portfolio to ensure high exposure to themes can be extremely financially rewarding.
It’s also highly challenging. Thematic investing has become increasingly popular in recent years, and in a crowded, hyper-competitive market it’s become essential for asset managers not just to keep up with trends but to deliver actual, sustainable investment performance.
To that end, CID and Raise Partner have collaborated to support thematic asset allocation while controlling specific risk and performance measures.
We’ve worked with Raise Partner to establish an investment approach driven by Thematic Intelligence, whereby scores based on an assessment of company theme exposures are fed into Raise Partner’s optimisation tools.
Unlock greater performance
Our collaboration with Raise Partner has enhanced the process of constructing thematic portfolios.
For instance, the partners apply an index tracking strategy to demonstrate the strengths and possibilities of combining theme exposure analysis with performance/risk optimization.
Company exposures to innovative and potentially high-performance themes are directly integrated with Raise Partner optimisation tools. A showcase illustrates the construction of a thematic allocation while controlling a specific risk measure.
CID and Raise Partner enrich portfolio construction with theme exposure calculation based on qualitative data and portfolio optimisation capabilities.
Our approach demonstrates thematic asset allocation while keeping performance high is possible.”
Sophie Echenim, CEO, Raise Partner
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