Investment Risk Management

Many firms rely on standardized “off-the-shelf” risk management solutions, which often fail to capture the unique complexities of individual investment strategies and potentially overlook risks or miss opportunities to enhance risk-adjusted returns.

At Allspring, we believe in integrating risk management with advanced investment analytics. We combine proprietary software with vended risk models in a highly automated, hybrid platform to ensure transparency, rapidly flag unintended risks, and identify opportunities to improve performance. By closely monitoring each investment team’s process, we uncover sources of both alpha and risk, and work to deliver a tailored, data-driven advantage that we believe generic solutions can't match.

 Key functional sub-teams of Investment Analytics

• Equity Risk Analytics
• Multi-Asset-Class Risk Analytics
• Fixed Income Risk Analytics
• Mutual Fund Risk Analytics
• Counterparty Risk Management
• Model Risk Management
• Portfolio Analytics
• Sustainability Analytics
• Investment Intelligence
• Quantitative Insights and Data Science

From portfolio managers to clients, everyone wants to know.

Markets can be affected by many types of risks, and each risk’s impact generally varies over time. The Investment Analytics team is responsible for continuously monitoring known risks, anticipating and identifying new risks, and regularly communicating the results of our analyses to all of Allspring’s investment teams.

A consistent, unbiased framework to risk management

Through our advanced analytical capabilities, we aim to provide a consistent, unbiased framework for evaluating investment risk in every strategy across the firm.

Capabilities in action: Risk decomposition 

• Provide daily reports using risk models and analytics from industry-leading vendors
• Identify significant risks by decomposing exposures into country, currency, style, sector, and security-specific components
• Act as the first step in escalating significant risks to senior management

Capabilities in action: Integrating sustainability analytics

• Assess a portfolio’s sustainability risk exposures using both vended and proprietary sustainability metrics
• Align the portfolio with client sustainability objectives
• Integrate analytics, insights, and reporting through tools like negative/positive screening, ESG integration, thematic and impact investing to help meet client objectives

Capabilities in action: Escalating risks

• Regularly administer assessments, reports, and analyses to facilitate a better understanding of intended and unintended investment risks
• Conduct an extensive review of performance drivers if a product experiences extreme performance and triggers the team's daily filters

Not your typical risk management

The Investment Analytics team works alongside all of our equity teams, throughout the whole investment process. Our flexible approach to diverse risk management needs across various strategies and styles instead of an “off the shelf” solution is a true differentiator at Allspring.

Each month, the Allspring Investment Analytics team assembles a list of market risks that it believes could influence investment portfolios and releases findings via the Allview Market Risk Monitor.

The report outlines the top 10 current global market risks, ranked by each risk’s probability of occurring and potential impact on global markets. The list is not exhaustive, but rather a short collection of items that answer the question: “As a risk manager, what keeps you up at night?”