automated portfolio intelligence
TRANSCRIPT
Automated Portfolio Intelligence& Predictive Analytics
www.blackswanconsultinggroup.com | [email protected]
— Logic Canvas Platform 2.0 —
Automating Portfolio Intelligence to incorporate Predictive Analytics is a complex challenge. Developing such a framework involves bringing together:
Evolving from Data Management to Predictive Analytics
In a light-speed market with exponentially accumulating data, managers need risk metrics that are tuned to complex market dynamics and not simply based on short-term historical performance.
Machine Learning in particular has the potential to produce predictive insights if coupled with a suitable data framework.
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Multiple Data Sources
Analytic Software Packages
Complex Calculations
Reporting Tools
Developers / Quants
• Internal Stakeholders
• Risk Management
• Regulatory
• What-if Analysis
• Ad-Hoc Reports
• Pricing
• Stress Testing
• Monte Carlo
• Duration / Convexity
• Value-at-Risk (VaR)
• Cash Flow Analytics
• Deal Model Libraries
• Internal Systems
• Machine Learning
• Simulation Models
• Position Data
• Market Data
• Accounting Data
• Pricing/Valuation
• Internal Research
Analytic SoftwarePackages
Multiple Data Sources
DifferentReporting Needs
CustomizedCalculations
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Expensive off-the-shelf Portfolio Management software is bloated with unused features and a rigid framework that make it difficult to add new components. Many firms bring in developers to design custom workarounds, but those solutions require manual intervention and results in a patchwork framework.
• Critical reliance on manpower to manually share information
• Inefficient time-consuming process
• Increased likelihood of introducing errors
• Report generation tends to be ad-hoc
• Inconsistent analysis
• Business logic is ultimately trapped in the code for each system / component
• Updating / Replacing / Adding components requires starting from scratch
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Integrating each analytic component through a central hub would facilitate theflow of information between them. Business logic and processes could beautomated to deliver custom reports that offer new actionable insights andpredictive analytics.
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Logic Canvas is Black Swan’s analytic platform that acts as a central hub to connect all your data,analytic software packages, calculations and reporting needs. With Logic Canvas we create anautomated solution that incorporates advanced machine learning to provide insights into portfoliorisk, integrated with predictive models that can project future performance. It is a single powerfulplatform custom-tailored to your business logic.
Multiple Inputs:• Database Sources• Analytics Software Packages• Complex Calculations
Logic Canvas:Black Swan Product Specialists
and Developers Integrate & Automate Your Business Logic
Custom Output:Web Based Dashboard with Data Visualizations, or Any Reporting
Package of Client’s Choosing
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Visual Logic Canvas uses visual programming. No important business logic trapped inside code. All business logic is centralized and can be visually communicated with clients.
Multiple Reporting Options - We will customize interactive dashboards that support data visualization tools that offer more actionable insights.
Integrations We don’t have to re-invent the wheel. All of the client’s market data, analytic systems and complex calculations are connected through Logic Canvas as the central hub.
Automation Data and information is no longer isolated. Manual tasks can be automated to save time and reduce the chance for errors.
Flexible Built-in support for .NET, Python, R, HTML5/JavaScript opens many possibilities for integration .
Modular – Replace outdated components and plug-in new modules to add unlimited functionality.
Transparent All steps of the workflow are visibly auditable, increasing regulatory compliance.
Drag and Drop An intuitive interface (no programming skills necessary) allows product specialists to create solutions faster.
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Logic Canvas can integrate with just about any third-party software that supports API control. We are constantly developing and growing our number of
pre-built integrations based on customer need.
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We currently use Logic Canvas in all of our consulting engagements. Logic Canvas has the power to fill in your gaps in coverage, to enhance spreadsheets and graphically
create risk management functionality.
Here are some examples of what can be automated:
Custom Scenarios
Extract, transform, load
Using Machine Learning Performance Attribution
Centralized for analysts
Evaluate Performance Transparent calculation logic
Gain fresh insights
Internal or vendor software
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Asset managers need to transition from struggling with data management to achieving Portfolio Intelligence and Predictive Analytics.
Since everything is integrated and flows through Logic Canvas we can create interactive dashboards that meet exact business specifications.
Dashboards can be published to the cloud and accessed from any connected device.
Model inputs can be changed by dashboard users on the fly and calculations refreshed in real-time.
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Data Science continues to transform the financial services sector. Our framework supports rich data visualizations and ad-hoc analysis using business intelligence such as Tableau and QlikView.
By integrating and automating we can centralize and prepare large data sets for analysis, delivering valuable, actionable insights.
Tableau Desktop 9.1
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Portfolio Migration
Price Movement
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Cash Flow Testing
Portfolio Composition
Trading Activity
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Performance Benchmark
Manager StyleSector Exposures
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CONSULTATIONIt starts with our strong financial expertise. Our specialists will work with you to understand your goals and identify the inputs and components where automation can have it’s biggest impact.
DEVELOPMENT
Development happens along side your current systems. Your current operation are not disrupted in any way. Our team of developers and quants will use pre-built integrations or build modules to integrate your data and analytics packages in Logic Canvas.
IMPLEMENTATION
The solution is deployed after the first integration and automation is complete and grows overtime as new modules are added. Reports are published via web browser to interactive dashboards or exported to your software of choice via REST API.
ONGOING SUPPORT
We will continue to work with your team to refine the analytics and dashboards, replace old and outdated systems, and add new functionality.
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Support Staff
Multi-Disciplinary Team
TechnologyDevelopers
Product Specialists
PhD Quants
• Fully Customized Automated Portfolio Intelligence Analytics
• Independent Valuations
• Capital Charge Calculations
• Cash Flow Analytics
• Risk Management
• Model Validation
• Audit Support
Team-Based ApproachOur Services Since 2008
Legal, Compliance,Financial Analysts
Structuring, Trading& Risk Management
.NET, Python, R, REST API & SQL
Machine Learning, Monte Carlo & Statistics
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• Black Swan is a boutique investment consulting firm dedicated to working with financial institutions
• The firm provides solutions in valuation, risk assessment, regulatory compliance and analytics
• Senior members of the team have worked closely together since the firm’s inception in 2008
• The firm has a proven-track record in delivering mission-critical solutions to institutional investors
• As a matter of public record, Black Swan served as financial advisor to the FDIC on the valuation and
disposition of a $1 billion portfolio
• As a provider of independent valuations on structured finance products, the firm has significant data and
insight into how trading desks price securities
• The firm is composed of a multidisciplinary team including capital market, risk management, PhD quant,
software development and legal/compliance specialists
• Black Swan provides outsourced analytics support and automated solutions
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(917) 338-2380 x7002
www.blackswanconsultinggroup.com
(917) 338-2380 x7013
www.blackswanconsultinggroup.com
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