RiXtrema, a risk modelling and stress testing solutions provider to large asset managers, has launched a free version of its institutional risk analytic tool for individual investors.
The app, www.PortfolioCrashTesting.com, enables consumers to stress test their portfolios or funds with scenarios selected by RiXtrema’s research team and modelled by the firm’s proprietary software.
The app provides investors with a simple to understand view of how a portfolio or fund is likely to perform under given scenarios and then using its built-in optimiser, investors can identify hedges or additional options for mitigating risk in line with their personal risk tolerances.
“Investors who build retirement portfolios frequently fail to consider how their portfolio might perform when things go bad, when inflation rises or emerging markets collapse, for example. They are generally aware of the existence of those risks, but had no way of estimating them, because previous risk tools were difficult to understand and communicate,” says Daniel Satchkov, president of RiXtrema. “RiXtrema’s tools are designed to help individual investors better understand and manage risk in their portfolios by providing them access to the same stress testing engine used by some of the world’s largest, most sophisticated institutions and financial advisors.”
RiXtrema’s approach focuses on stress testing – which is a forward looking tool for understanding the potential risks in a portfolio based on measuring the impact of plausible scenarios. Stress testing allows the user to specify different scenarios and to measure how they will impact the portfolio return. RiXtrema licenses these solutions to liability-driven investors including pension plans and consultants, mutual funds, hedge funds, funds of funds and other asset managers as well as sophisticated financial advisors.
