Investment Risk Management

Risk-management tools provide the scientific foundation for our portfolio-management process. They help us analyse the risks we take, allow us to optimise the allocation of our risk budget when picking stocks, and help us avoid unintended or positively correlated macro, thematic or factor risks. We use a range of approaches, combining medium and shorter-term models to dynamically incorporate changes in market behaviour.

Paul Hughes
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Paul Hughes

Head of Investment risk, Trading and Infrastructure

Approach to investment risk management

Our experienced investment risk team works collaboratively portfolio management teams to improve understanding of portfolio positioning and behaviour in order to help managers make high quality decisions that optimise the risk/return characteristics of our clients’ portfolios.

Independent oversight is provided by our investment risk governance team, who sit within our governance, legal, risk and compliance function. Reporting directly to the Chief Risk Officer, the investment risk governance team ensures that client assets are managed with an appropriate level of risk, in line with regulatory, client, and internal expectations.

Both investment risk teams work together to ensure that appropriate investment risk frameworks are in place and that comprehensive reporting and analytics are made available to help understand all relevant aspects of risk within the Martin Currie funds.