According to a recent survey, commissioned by State Street of more than 400 senior executives at investment organizations, advanced data tools and practices will be the most powerful drivers of change in the finance industry over the next decade (95 percent plan to invest more in their data and analytics capabilities over the next three years1).

“Investors need tools that can analyze their portfolios across multiple asset classes, investment regimes, and allocations,” said Will Kinlaw, senior managing director and head of research and investment strategies at State Street Global Exchange. “GX Investment Labs convert our most widely followed research ideas into practical and interactive tools that help our clients apply them to their portfolios.”

GX Investment Labs encompasses three new portals, each with a distinct focus: dynamic risk management, liquidity modeling, and asset allocation.

GX Risk Lab enables clients to create, analyze, and monitor daily risk indices based on the absorption ratio, centrality, turbulence, volatility surprise and correlation surprise. It can be used to measure a portfolio’s intrinsic risk and performance or applied to specific scenarios and markets. Clients can design stress test scenarios, event studies and dynamic filter rules and monitor their collection of signals on a daily basis and configure custom automated alerts.
GX Liquidity Lab is a flexible simulation environment that enables investors to estimate the shadow return and risk associated with the ways they trade and deploy liquidity. Simulations can model regime-switching dynamics, specific rebalancing rules and potential capital call distributions.
GX Portfolio Lab is a toolkit spanning multiple optimization algorithms and risk budgeting tools. Clients can identify optimal asset allocations given specific preferences and capital market assumptions, control for benchmark-relative risk and non-normal return distributions and analyze within-horizon risk distributions.

Also included in the GX Investment Labs is the recently launched GX Private Equity Portal which allows clients access to State Street’s private equity universe and offers the ability to design custom benchmarks and perform manager peer comparisons.

More labs are in development and are expected to launch throughout 2015.