FactSet Research Systems Inc. (NYSE:FDS) (Nasdaq:FDS), a leading provider of financial information and analytical applications to the global investment community, today announced the release of its ground-breaking Single Name Security Exposures analysis tool.
Single Name Security Exposures lets FactSet clients look across all portfolios or a subset of portfolios to quantify exposure to a security, an issuer, an industry, a country, or any user-defined set of securities.
"Simply put, Single Name Security Exposures tells you how much you own and where you own it," said Chris Ellis, FactSet Director of Analytical Products. "The analysis is straightforward, so it's easy to act upon. This isn't a predicted standard deviation of excess returns, and there isn't a theoretical dimension. The results are risk that everyone can easily understand."
The ongoing reporting aspect of Single Name Security Exposures revolves around compliance, while the ad hoc value relates to the news of the day or major market events.
"As a risk manager or CIO, when you formulate your views on macro trends that will guide the market or as you try to act on the ideas from an investment committee meeting, you want to know your exposure to the companies that embody trends or your key insights," said Ellis. "Single Name Security Exposures is a compelling complement to ex-ante risk analysis in that research."
To support this analysis, FactSet combines portfolio holdings data clients store on its systems with comprehensive parent/child entity data. By having clear connections between parent companies, subsidiaries, and all related securities, FactSet users can examine exposure to an individual security or all securities related to an issuer, including common equity, preferreds, debt, equity options, and credit default swaps.
"With Single Name Security Exposures, our goal, as always, is to help our clients do more in less time, so they spend less time compiling analysis and more time performing analysis," said Ellis.