We can work with a wealth management client to identify a portfolio of active investments (such as ETFs) representing the markets or sectors that their suite of fund solutions is focused on.

Our weekly regime scores represent periods of similar risk across different markets and sectors. We are not concerned so much with the scale of movement in each sector as much as the nature of the movement at the point in time. This allows the client to consider the relative risk of different fund types at each point in time.

While each of the 12 stages of our index is a unique category of risk features, most investments do not vary wildly from week to week. As a result, by looking at broader groups of these scores, (+3 to +6), (+2 to -2), and most importantly (-3 to -6) we aggregate the risk measurement into broader periods of 9 – 12 weeks.

Because our scoring is updated on a weekly basis, at these levels our wealth management clients can consider a rolling quarterly view of market performance. The effect is that we always provide a snapshot of the market when it is needed to support:

• Initiating a new fund portfolio;
• Conducting a periodic fund portfolio review; and
• Occasionally, taking corrective action to preserve portfolio value.

Importantly, our wealth management clients are no longer limited to a traditional March, June, September, December calendar driven performance update and review process.

We distinguish what we do from the activities of algorithmic trading strategies or “black boxes” that are designed by the author to generate buy and sell action points tailored to a single portfolio objective.

Our full-service portfolio risk model interprets the combination of regime scores, rotation signals, and risk ladders as a weekly service with scope for a daily update.

However, we have taken time to break down this approach and segregate the key components so that they can be incorporated into a wider range of risk management strategies. We meet individual client needs by:

• Defining a specific portfolio taking into consideration our clients’ investment horizons and objectives;

• Providing a history of the regime scores, rotation signals, and risk laddering for back testing;

• Delivering our proprietary data on a daily or weekly subscription basis.

Importantly we can deliver content for consumption in different formats as a raw data file, pdf reporting, or through a web portal as a tailored subscription service.

In effect we don’t have a single service as much as we can provide a unique combination of market coverage, investment horizon, risk management tools, and content delivery for each client.

We price our services on several factors, but it is safe to say that it is a function of the resources required to set up and deliver a “model” along with the scalability of the final subscriber base.

Our existing client base includes, asset managers, brokerages, hedge funds, and financial advisors with each client receiving a tailored service in terms of frequency, market coverage and dashboard content.

We have recently invested in our own data infrastructure so that we can deliver more content in a wider variety of formats to meet the needs of individual clients or defined subscriber groups.

We don’t expect to cater for large subscriber groups as part of our preferred business model but we would be very happy to work with distributors of data or risk management content to develop tailored services and content that meet their own client groups, needs and objectives.