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HiddenLevers and First Rate to Improve Risk Analytics for Wealth Managers

A new integration between wealth management solutions provider First Rate and FinovateFall alum HiddenLevers will bring advanced stress testing to help wealth managers better manage portfolio risk.

HiddenLevers offers a risk monitoring and analytics platform that enables wealth managers and advisors to measure client risk tolerance, stress test portfolios, and provide recommendations on how risk can be further reduced while still meeting investment objectives. The company’s portfolio analytics functionality allows managers to analyze a wide variety of asset classes – including stocks, bonds, exchange-traded funds (ETFs), mutual funds, annuities, real estate, options, and currencies. The technology also allows users to upload a return series to enable analysis of private investments, as well.

“Together, HiddenLevers and First Rate are excited to chart new waters in the wealth management space,” HiddenLevers Director of Business Development David Ristau said. “This integration showcases best-in-class wealth management solutions aligned with enterprise business intelligence, just when the market needs it most.”

HiddenLevers relies on big data to analyze the relationships between a wide range of economic metrics and more than 35,000 investments. The company then leverages “what-if” scenarios that model economic events, as well as historical research and analysis, to identify correlations between economic events and economic indicators. At this point, HiddenLevers is able to conduct stress-testing by applying the relationships uncovered in the first stage of the process to the various stress scenarios constructed in the second stage.

Courtesy of the integration, First Rate clients will get access to the HiddenLevers platform and the ability to import portfolios into HiddenLevers for portfolio and risk profiling. In partnering with First Rate, HiddenLevers clients benefit from access to a leading IPAAS provider that can drive their wealth management network.

“By integrating with HiddenLevers, First Rate is enabling wealth managers to be better stewards of their clients’ investments,” First Rate Chief Products Officer Marshall Smith said. “The ability to leverage fully reconciled and accurate performance data and forward-looking risk attributes are pivotal to overseeing investor assets for wealth management firms.”

Atlanta, Georgia-based HiddenLevers demonstrated its Economic Analysis Suite and Economic Editorial Widgets at FinovateFall 2010. Earlier this year, the company announced that it was extending its partnership with Orion Business Intelligence with the launch of its business intelligence integration Risk Monitor. With more than $400 billion in assets on the platform, HiddenLevers was founded in 2009. Praveen Ghanta is co-founder and CEO.