Investment Data Science
For asset owners with sophisticated multi-asset class portfolios, investment processes governed by Excel and oral history are no longer enough. To meet today’s challenges, institutional investors need the data – and just as important, the infrastructure - to make consistently smart decisions and keep allocations aligned to strategy.
Through a strategic partnership with Venn® by Two Sigma, Northern Trust now offers institutional investors integrated access to a cloud-based investment infrastructure that augments traditional analytics to help systematize their investment process. Venn is designed to provide quantitative insights, better risk management, and a clearer picture of how the investment process drives (or impedes) performance.
Venn supports some of the world’s most sophisticated multi-asset class allocators. Venn’s tools are designed with flexibility and customization in mind, so no matter what type of institution you are, Venn can help support a smarter, more transparent investment process:
Set Strategic Asset Allocation
- Align factor exposures with targets, on both an absolute and relative-to-benchmark basis
- Build model portfolios for testing and analysis
- Reduce overlapping risk exposures among managers
Optimize Portfolio Allocations
- Help uncover style drift and alpha decay in new and existing managers
- Understand how changes to the manager lineup impact both historical and forward-looking portfolio performance
- Use the Portfolio Lab to explore different paths/tactics to achieve your strategic objectives
Improve Manager Evaluation
- Decompose a manager’s return and risk into beta and alpha components
- Develop performance reporting and benchmark comparisons
- Competitor analysis to inform strategy review and/or product development
- Estimate daily performance for monthly- and quarterly-valued holdings
Manage Total Portfolio Risk
- Build a comprehensive picture of total risk across internal and external portfolios
- Stress test portfolios to estimate the kinds of market events or historical periods that could most harm the portfolio
- Develop risk reporting for monitoring and for board presentations
Remove the Guesswork
Where conventional, Excel-based portfolio modeling practices limit efficiency and make collaboration a challenge, Venn allows for online collaboration and transparency to the entire investment team, as well as access to extensive and powerful analytics that teams can use to help objectively analyze their investments.
With automated API-based integration to Northern Trust and powered by Two Sigma’s extensive research, including their proprietary Two Sigma Factor Lens, you can use Venn to help your organization:
Integrate returns and attribution data from Northern Trust and explore Venn’s library of more than 100,000 pre-loaded public funds and indexes.
- Access portfolio information that is updated automatically through an integration with your Northern Trust account
- Leverage Venn’s library for easy benchmarking
- Search for new potential investments
Analyze your investment performance, decompose risk into factors, understand sensitivities to market events, and more.
- Identify style drift
- Isolate factor vs potential alpha performance drivers
- Stress test an investment with drawdown and scenario analysis
Evaluate an investment within the context of your broader portfolio to identify hidden or overlapping exposures and ensure alignment to your strategy and investment guidelines.
- Perform what-if analysis on the fly
- Better understand the impact of manager hire/fire decisions
- Optimize your portfolio’s asset allocation based on your organization’s constraints and objectives
Share insights and analyses with team members and collaborate far more efficiently than traditional Excel and email-based processes.
- Easily export and share analyses
- Instantly access your teammate’s work in the platform
- Customize your Venn workspace
See it in action
Integrated Support for Your Whole Office
Venn is one piece of a spectrum of solutions on our open platform to support your entire business. Our ecosystem of proprietary, vended, and partnered solutions helps meet the strategic, operational, and technological needs of our clients’ Whole Office.
Northern Trust & Venn by Two Sigma
Northern Trust Enters Strategic Agreement with Two Sigma to Provide Leading Quantitative Analytics Capabilities. Venn® by Two Sigma will offer solutions that can help Northern Trust clients make more informed investment decisions driven by sophisticated analytics and research, designed for allocators.
The Latest Investment Data Science Insights
Today's institutional investing industry has encountered a shift in the dynamic between investors and their asset managers, led by the availability of investment options in the market.
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Investment Data Science
Two Sigma Investor Solutions, LP operates Venn – see here for important disclaimers and disclosures. Venn is for institutional investors only.