The upcoming shakeup in the regulatory field is necessitating that buy-side firms place a greater emphasis on vendor, capital, and dependencies management. Nowhere is this more evident than with the new MiFID II regulations, which are coming into effect in January.
In light of this shift, Axioma has inked a new partnership with Omega Point, ensuring improved risk management capabilities for Omega Point’s clients.
Axioma presently boasts a diverse suite of equity factor models that caters to a wide pool of buy-side clients. The portfolio management firm’s decision to team up with Omega Point will facilitate better risk and vendor management in light of newer regulatory constraints. Per the partnership, Omega Point clients will be able to access Axioma’s factor models through their respective existing workflows.
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By assimilating Axioma’s equity factor models within the Omega Point workflow, clients will be able to garner several benefits, such as full portfolio risk decomposition through factor, industry, and asset-specific analytics. This in turn will be instrumental in fostering more informed investment decisions for investors.
Sunay Shah, Executive Director, Global Partnerships at Axioma, commented: “Forward-looking vendors need to seamlessly work together to better support market participants as they navigate the changing regulatory landscape. Our partnership with Omega Point addresses the buy-side’s need to mitigate the risks of integrating multiple systems, and exemplifies our commitment to delivering more value through closer collaboration with innovative fintech companies.”
“The rise of algorithmic and data-driven investing is challenging fundamental managers, representing $20 trillion of assets globally, to embrace a hybrid ‘quantamental’ approach to generate alpha and improve returns. By enabling turnkey access to Axioma’s models via the Omega Point workflow, our clients can access the kind of market insight that instills more confidence in their investment decisions,” noted Omer Cedar, CEO and co-founder of Omega Point.
Axioma has been particularly active in recent months through several partnerships and ongoing collaborations. In May, the group teamed up with FactSet, embarking on a strategic agreement with Mirova and Natixis. The joint accord helped link up some of the largest asset managers in Europe – Mirova currently represents the second-largest European manager of open-ended SRI funds, while Natixis Asset Management also maintains a role as one of the largest European-based asset managers.