First Allied employs SAS Business Analytics to build and maintain sophisticated financial models for its high net worth clients.
SAS arms the company with up-to-the-minute analyses and unique, proprietary reflections of market perspectives and risk tolerance.
"We rely on SAS for many of our major investment decisions," says Jeff Mindlin, chief portfolio strategist at First Allied Asset Management.
First Allied handles more than USD1.1bn in client holdings while managing more than 100 different investment models, and uses SAS Business Analytics to run weekly analytical models that provide updated visibility into exchange traded funds (ETFs) individual stocks, sectors and the top 1,000 stocks (by market capitalisation).
"Our chief investment officer is a Chartered Market Technician (CMT). Our challenge is to translate the most critical charts and patterns into SAS models that identify the measures he focuses on," says Mindlin. "We’re running a very deep set of calculations and metrics across numerous periodicities. With daily pricing data from Morningstar and other sources – some extending back decades – we’re looking at tens of millions of rows and several gigabytes of data."
Risk management is also a consideration. "We run our portfolios through proprietary SAS models to identify potential risk exposures – beta and correlations to stocks, bonds and commodities, and more granular size, sector, style, country, credit, and interest rate exposures and so forth," says Mindlin. "We can see if our portfolio risks align with our market outlook and themes."
Mindlin says the SAS deployment is low impact and easy to maintain. "Even with resource-intensive routines, our remote virtual machine has kept our cost low," he says. "While we modify the routines, I am able to maintain it without any dedicated resource or outsourced contractor."
"First Allied is an excellent example of how SAS helps investment and asset managers make decisions and analyse risk," says David M Wallace, global financial services marketing manager at SAS. "To successfully support critical decisions on behalf of clients, analytics helps global and regional capital markets firms to quickly glean unique insights from big data."