In the news
In the news
23 Jan 2012 - Finvex Group releases second generation of R-Equity portfolio optimizer
Finvex Group has released its second generation R-Equity engine for advanced portfolio optimization. “Our platform is utilizing the differential evolution algorithm in a parallel manner when optimizing a portfolio. We can now take into account forward looking dynamic estimates of higher co-moments” says Christophe Pecoraro, Head of Structuring at Finvex Group.
Our second release of R-Equity allows us to change the objective function from the established minimum variance function to more complex risk functions such as expected shortfall and this in combination with ex ante compliance with quadratic and linear constraints”, adds Joakim Darras, Founding Partner of Finvex Group.
“Proper risk analysis is the better starting point for professional equity investing”, says Benedict Peeters, Founding Partner of Finvex Group,” and we continue to advance looking at adding new features to deal with regime changes and high frequency data”
Our second release of R-Equity allows us to change the objective function from the established minimum variance function to more complex risk functions such as expected shortfall and this in combination with ex ante compliance with quadratic and linear constraints”, adds Joakim Darras, Founding Partner of Finvex Group.
“Proper risk analysis is the better starting point for professional equity investing”, says Benedict Peeters, Founding Partner of Finvex Group,” and we continue to advance looking at adding new features to deal with regime changes and high frequency data”
2011
17 Oct 2011 - Jorn De Boeck joins Finvex Group
Jorn De Boeck is the latest partner to join Finvex Group where he will be in charge of quantitative portfolio design and related advisory. Previously, he was a senior portfolio manager structured products at BNP Investment Partners Brussels and a quantitative analyst global fixed income at Fortis Investments London. Jorn also worked as a research assistant at the Katholieke Universiteit of Leuven. During his career Jorn gained vast experience in quantitative investment strategies, risk analysis, derivatives pricing, programming and fund management. Jorn is M.Sc. Economics (K.U. Leuven), is a CFA Charterholder and obtained Paul Wilmott's Certificate in Quantitative Finance.
“We are very excited to have Jorn onboard”, says Joakim Darras, Founding Partner at Finvex Group. “His expertise is a natural extension to our quantitative risk focused business model”. “I am convinced of the vision behind the Finvex Group approach”, says Jorn De Boeck. “Focus on risk above return is the right investment methodology” he continues.
Finvex Group is a Brussels based specialized consulting boutique in passive, quantitative investment solutions. The company recently entered into a strategic co-operation with Rabobank International.
“We are very excited to have Jorn onboard”, says Joakim Darras, Founding Partner at Finvex Group. “His expertise is a natural extension to our quantitative risk focused business model”. “I am convinced of the vision behind the Finvex Group approach”, says Jorn De Boeck. “Focus on risk above return is the right investment methodology” he continues.
Finvex Group is a Brussels based specialized consulting boutique in passive, quantitative investment solutions. The company recently entered into a strategic co-operation with Rabobank International.
7 Sep 2011 - Rabobank International and Finvex Group enter into a strategic co-operation
Rabobank International and Finvex Group have agreed to strategically co-operate in the field of risk optimized investment solutions. Finvex Group is a Brussels based specialized consulting boutique in passive, quantitative investment solutions and products who have assisted Rabobank International over the last 12 months in the development of the Rabobank Sustainable and Efficient Index Series. These investment solutions are Rabobank International’s answer to optimized equity investing in volatile times. The indices incorporate advanced methods in equity risk reduction and are based on sophisticated risk models designed by Finvex Group.
Rabobank International’s Global Financial Markets area and Finvex Group will now take this working relationship a step further with Finvex Group providing extensive specialist marketing and development services to Rabobank International. Rabobank International will leverage on Finvex Group’s expertise to build out a broader systematic investment solutions business.
“Investors want more stability”, says Xavier Ducros, European Head of Structuring at Rabobank International, “Rabobank International stands for such stability, as do our solutions with Finvex Group” he continues. “We are very excited about this co-operation” says Benedict Peeters, CEO of Finvex Group, “Rabobank advocates the same principles of proper risk management as we do” he continues.
Rabobank International’s Global Financial Markets area and Finvex Group will now take this working relationship a step further with Finvex Group providing extensive specialist marketing and development services to Rabobank International. Rabobank International will leverage on Finvex Group’s expertise to build out a broader systematic investment solutions business.
“Investors want more stability”, says Xavier Ducros, European Head of Structuring at Rabobank International, “Rabobank International stands for such stability, as do our solutions with Finvex Group” he continues. “We are very excited about this co-operation” says Benedict Peeters, CEO of Finvex Group, “Rabobank advocates the same principles of proper risk management as we do” he continues.
13 May 2011 -Finvex Group releases R-Equity Engine for advanced portfolio optimization
Finvex Group has released a new R-Equity Engine for advanced portfolio optimization. “The platform is one of the fastest and most flexible equity portfolio construction tools in the world and the amount of data it can handle is impressive. The new R-Equity Engine has been created to design portfolio solutions with emphasis on ex-ante risk management” says Christophe Pecoraro, Head of Structuring at Finvex Group, “We calculate dynamic co-variance and correlations matrices on the basis of advanced forward looking techniques and properly deal with outliers” he continues.
“R-Equity can deal with any parameters : we can operate on stock, sector and regional level, we can constrain turnover, impose weight and risk constraints on different levels”, adds Joakim Darras, Founding Partner of Finvex Group. “Results are impressive and provide new insights and investment methodologies”, he continues.
“Finvex Group will use the new engine to design tailored and transparent investment solutions for institutional investors and investment banks. The engine can also be used for control and overlay purposes on existing portfolios”, says Benedict Peeters, Founding Partner of Finvex Group.
“R-Equity can deal with any parameters : we can operate on stock, sector and regional level, we can constrain turnover, impose weight and risk constraints on different levels”, adds Joakim Darras, Founding Partner of Finvex Group. “Results are impressive and provide new insights and investment methodologies”, he continues.
“Finvex Group will use the new engine to design tailored and transparent investment solutions for institutional investors and investment banks. The engine can also be used for control and overlay purposes on existing portfolios”, says Benedict Peeters, Founding Partner of Finvex Group.
24 January 2011 - Kris Boudt joins Finvex Group
Kris Boudt joins Finvex Group as a partner.
Kris Boudt, PhD in Applied Economics at K.U.Leuven, is an expert in financial risk analysis. He is an Affiliate Researcher at the K.U.Leuven (Belgium) and Assistant Professor at the business schools of Lessius in Antwerp (Belgium) and the University of Illinois in Chicago. He will continue to combine these functions with his partner role in Finvex Group.
Furthermore, Kris Boudt is author of several influential financial research papers with publications in Journal of Risk, Journal of Empirical Finance, RISK magazine and the CSDA issue on financial econometrics, among others. His research focuses on robust estimation of financial risk under non-normal distributions, the analysis of predictors of market stress and the integration of CVaR budgets and sustainability objectives into successful portfolio allocation rules.
“We are very pleased to have Kris on board as a partner”, says Joakim Darras, Founding Partner of Finvex Group. “He brings along a wealth of expertise on normal and extreme financial risks, cornerstone ingredients for crisis proof intelligent investment solutions” he continues.
“Finvex Group has the right focus and knows the market” says Kris Boudt. “I am excited about this partnership and to bring advanced risk insights to the market through innovative financial solutions and recommendations. Our findings today are truly groundbreaking.”
“Kris will be instrumental in building out our research platform for state-of-the-art investment solutions and advanced advisory to banks, insurers and wealth managers” adds Benedict Peeters, Founding Partner of Finvex Group. “The landscape is changing: risk and extreme risk become ex-ante drivers of strategic and tactical asset allocation instead of ex-post checks” he concludes.
Finvex Group was founded in 2009 and offers expertise in advanced financial investment solutions accessible through custom index design or advisory.
Kris Boudt, PhD in Applied Economics at K.U.Leuven, is an expert in financial risk analysis. He is an Affiliate Researcher at the K.U.Leuven (Belgium) and Assistant Professor at the business schools of Lessius in Antwerp (Belgium) and the University of Illinois in Chicago. He will continue to combine these functions with his partner role in Finvex Group.
Furthermore, Kris Boudt is author of several influential financial research papers with publications in Journal of Risk, Journal of Empirical Finance, RISK magazine and the CSDA issue on financial econometrics, among others. His research focuses on robust estimation of financial risk under non-normal distributions, the analysis of predictors of market stress and the integration of CVaR budgets and sustainability objectives into successful portfolio allocation rules.
“We are very pleased to have Kris on board as a partner”, says Joakim Darras, Founding Partner of Finvex Group. “He brings along a wealth of expertise on normal and extreme financial risks, cornerstone ingredients for crisis proof intelligent investment solutions” he continues.
“Finvex Group has the right focus and knows the market” says Kris Boudt. “I am excited about this partnership and to bring advanced risk insights to the market through innovative financial solutions and recommendations. Our findings today are truly groundbreaking.”
“Kris will be instrumental in building out our research platform for state-of-the-art investment solutions and advanced advisory to banks, insurers and wealth managers” adds Benedict Peeters, Founding Partner of Finvex Group. “The landscape is changing: risk and extreme risk become ex-ante drivers of strategic and tactical asset allocation instead of ex-post checks” he concludes.
Finvex Group was founded in 2009 and offers expertise in advanced financial investment solutions accessible through custom index design or advisory.
2010
26 October 2010 - Ex-Deutsche Bank Head of Index Strategies Group strengthens Finvex Group's fixed income expertise
John Butler has 17 years experience in the global financial industry, having worked for European and US investment banks in London, New York and Germany.
"John is a financial investments expert with the right mix of expertise for Finvex Group" says Benedict Peeters. "He complements our existing suite of services thanks to his senior roles in fixed income held at Deutsche Bank and Lehman Brothers in the past" adds Joakim Darras.
He is also a founder and the Managing Partner of Amphora Capital, a financial research, product development and consulting firm. Prior to founding Amphora Capital he was Managing Director and Head of the Index Strategies Group at Deutsche Bank in London, where he was responsible for the development and marketing of proprietary, index-based quantitative strategies for global interest rate markets. Prior to joining DB in 2007, John was Managing Director and Head of European Interest Rate Strategy at Lehman Brothers in London, where he and his team were voted #1 in the Institutional Investor research survey.
John Butler summarises: "Rather than attempt to generate highly-leveraged, risky returns in an uncertain environment in which assets in general are difficult to value, my approach is focused on regime-specific diversification. Finvex Group is pioneering in the field of risk mitigation, and we share the same view that many safe and normally uncorrelated investments are no longer as defensive or diversified in the aftermath of the global financial crisis. I look forward to developing such investment concepts across all asset classes with my partners in Finvex Group".
"John is a financial investments expert with the right mix of expertise for Finvex Group" says Benedict Peeters. "He complements our existing suite of services thanks to his senior roles in fixed income held at Deutsche Bank and Lehman Brothers in the past" adds Joakim Darras.
He is also a founder and the Managing Partner of Amphora Capital, a financial research, product development and consulting firm. Prior to founding Amphora Capital he was Managing Director and Head of the Index Strategies Group at Deutsche Bank in London, where he was responsible for the development and marketing of proprietary, index-based quantitative strategies for global interest rate markets. Prior to joining DB in 2007, John was Managing Director and Head of European Interest Rate Strategy at Lehman Brothers in London, where he and his team were voted #1 in the Institutional Investor research survey.
John Butler summarises: "Rather than attempt to generate highly-leveraged, risky returns in an uncertain environment in which assets in general are difficult to value, my approach is focused on regime-specific diversification. Finvex Group is pioneering in the field of risk mitigation, and we share the same view that many safe and normally uncorrelated investments are no longer as defensive or diversified in the aftermath of the global financial crisis. I look forward to developing such investment concepts across all asset classes with my partners in Finvex Group".
20 October 2010 - BEL20 Index is not built to perform (De Tijd)
The Finvex Group has recently been quoted in ‘De Tijd’ (Belgian reference financial newspaper) in the ‘Money & Investing’ section.
The article, part of a specialised ‘Week of investing’ theme, addressed the structural weakness of the Belgian BEL 20® index. It quoted the founders of the Finvex Group who were questioning the basic principles behind market capitalisation weighting of benchmark indices. Mostly, Finvex argues that market capitalisation based indices neither perform well, nor do they reduce the risks of investing in equities. The partners went on demonstrating their point by simply weighting the Belgian benchmark index equally.
The ultimate investment technique utilises a model developed in conjunction with Professor Hübner of HEC-ULg and the specialised financial risk software developer, Gambit. Finvex Group showed the results of such a risk controlling model applied to the Belgian equity universe, by continuously selecting 10 stocks during the last 10 years. The resulting BEL10 index would have registered a 4.04% return p.a. while the BEL20® index had only performed -1.95% p.a. Furthermore, the benchmark index was relatively risky with its 21% volatility while the BEL10 reduced the volatility to 2/3 of the benchmark volatility.
The model allows to construct stable portfolios and indices in most investment universes and asset classes.
Read more
The article, part of a specialised ‘Week of investing’ theme, addressed the structural weakness of the Belgian BEL 20® index. It quoted the founders of the Finvex Group who were questioning the basic principles behind market capitalisation weighting of benchmark indices. Mostly, Finvex argues that market capitalisation based indices neither perform well, nor do they reduce the risks of investing in equities. The partners went on demonstrating their point by simply weighting the Belgian benchmark index equally.
The ultimate investment technique utilises a model developed in conjunction with Professor Hübner of HEC-ULg and the specialised financial risk software developer, Gambit. Finvex Group showed the results of such a risk controlling model applied to the Belgian equity universe, by continuously selecting 10 stocks during the last 10 years. The resulting BEL10 index would have registered a 4.04% return p.a. while the BEL20® index had only performed -1.95% p.a. Furthermore, the benchmark index was relatively risky with its 21% volatility while the BEL10 reduced the volatility to 2/3 of the benchmark volatility.
The model allows to construct stable portfolios and indices in most investment universes and asset classes.
Read more
24 June 2010 - Finvex Group creates strategic alliance with Gambit Financial Solutions and Professor Georges Hübner
Finvex Group, the specialist in custom indexation, has entered into a strategic alliance with Gambit Financial Solutions and Professor Georges Hübner of HEC ULg.
Gambit Financial Solutions has been created as a spin-off from HEC-ULg and now offers innovative technology solutions in financial risk profiling and investment optimisation. Georges Hübner, PhD INSEAD, is a professor of Financial Management at HEC-ULg Belgium, Affiliate Professor at EDHEC in France and a co-founder of Gambit Financial Solutions.
“This partnership is a milestone for Finvex Group” says Benedict Peeters of Finvex Group, “Georges Hübner is a widely recognized academic expert in financial engineering”. “Furthermore, the Gambit technology is state-of-the-art, especially in asset allocation” he adds.
“With Finvex Group, we want to further leverage our technology into financial investment solutions”, says Geoffroy De Schrevel, CEO of Gambit ,”especially our Folio Master application is a perfect match for Finvex”. Parties expect that their partnership will lead to innovative index concepts in the coming months.
Professor Georges Hübner confirms this view “We are convinced that our academic research will contribute to new index concepts and effectively be the basis for next generation indexation.”
Gambit Financial Solutions has been created as a spin-off from HEC-ULg and now offers innovative technology solutions in financial risk profiling and investment optimisation. Georges Hübner, PhD INSEAD, is a professor of Financial Management at HEC-ULg Belgium, Affiliate Professor at EDHEC in France and a co-founder of Gambit Financial Solutions.
“This partnership is a milestone for Finvex Group” says Benedict Peeters of Finvex Group, “Georges Hübner is a widely recognized academic expert in financial engineering”. “Furthermore, the Gambit technology is state-of-the-art, especially in asset allocation” he adds.
“With Finvex Group, we want to further leverage our technology into financial investment solutions”, says Geoffroy De Schrevel, CEO of Gambit ,”especially our Folio Master application is a perfect match for Finvex”. Parties expect that their partnership will lead to innovative index concepts in the coming months.
Professor Georges Hübner confirms this view “We are convinced that our academic research will contribute to new index concepts and effectively be the basis for next generation indexation.”
21 June 2010 - Christophe Pecoraro joins Finvex Group
Christophe Pecoraro will join Finvex Group as a partner in charge of structuring. Christophe has gained vast experience in derivatives and custom indexation at BNP Investment Partners where he was in the structured funds team since 2005. “Christophe will help us bring Finvex to the next level of growth and strengthen our position in custom index design” says Joakim Darras, co-founder of Finvex Group, “He will further industrialize our unique index design approach and co-ordinate R&D projects with different partners and service providers”. Pecoraro adds “I think indexation is the future and Finvex Group will be instrumental in the next generation of customized index solutions”.
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3 May 2010 - Finvex moves to new offices
As of the beginning of May, Finvex Group has relocated to the center of Brussels within the financial district. The centrally situated and newly refurbished offices are in the prestigious Arenbergstraat, at walking distance from Brussels’ famous Grande Place. The move is part of the ambitious growth plans of Finvex Group and will facilitate staff expansion and further improve client servicing.
24 Feb 2010 - Minimum variance inventor explains why it can continue to outperform
Citiwire.co.uk
In an exclusive interview with Citywire, Professor Robert Haugen - the inventor and co-author with Nardin Baker of various academic papers on the minimum variance concept - explains why minimum variance portfolios will contine to deliver the best returns in the long term.
For the professor, minimum variance portfolios strategies would be perfectly suited for two types of investors nowadays:'The first type is those who want to outperform a market index. A second type is those investors concerned about the amount of public and private debt.'
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In an exclusive interview with Citywire, Professor Robert Haugen - the inventor and co-author with Nardin Baker of various academic papers on the minimum variance concept - explains why minimum variance portfolios will contine to deliver the best returns in the long term.
For the professor, minimum variance portfolios strategies would be perfectly suited for two types of investors nowadays:'The first type is those who want to outperform a market index. A second type is those investors concerned about the amount of public and private debt.'
Read more
18 Jan 2010 - Ex-Fortis global head sets up boutique
StructuredRetailProducts.com
Benedict Peeters, Fortis Investments' former global head of structured business, has founded Finvex Group, an investment consultancy that will advise institutional investors on the design of customised, index-based investment solutions.
Peeters, who left Fortis Investments in October 2009, said the firm is working with a specialist quantitative development house in the development of customised, risk-optimised equity indices, which will be used as underlyings for investment solutions. "Our business has a three-fold strategy," said Peeters. "First, we will work on the creation of index strategies around sources of performance from the client itself. Second, we will create own sources of alpha such as quality and high-level, research-based quantitative strategies; and finally, we are working with another firm in the development of high added-value thematic sources of alpha. All these performance engines can be used as underlyings for transparent and true added-value investment products that combine elements of research/asset management and protection via derivative techniques."
The new boutique has three European partners and two in the US, with new partners expected to join this year. Benedict Peeters and senior structured products specialist Joakim Darras are the founding members and co-managing directors of the new venture. Peeters told SRP Finvex is in talks with index calculation agents over potential partnerships.
Benedict Peeters, Fortis Investments' former global head of structured business, has founded Finvex Group, an investment consultancy that will advise institutional investors on the design of customised, index-based investment solutions.
Peeters, who left Fortis Investments in October 2009, said the firm is working with a specialist quantitative development house in the development of customised, risk-optimised equity indices, which will be used as underlyings for investment solutions. "Our business has a three-fold strategy," said Peeters. "First, we will work on the creation of index strategies around sources of performance from the client itself. Second, we will create own sources of alpha such as quality and high-level, research-based quantitative strategies; and finally, we are working with another firm in the development of high added-value thematic sources of alpha. All these performance engines can be used as underlyings for transparent and true added-value investment products that combine elements of research/asset management and protection via derivative techniques."
The new boutique has three European partners and two in the US, with new partners expected to join this year. Benedict Peeters and senior structured products specialist Joakim Darras are the founding members and co-managing directors of the new venture. Peeters told SRP Finvex is in talks with index calculation agents over potential partnerships.
15 Jan 2010 - Standard & Poor's Custom Indices will calculate for Finvex
Finvex and Standard & Poor's agreed to co-operate, for the calculation, maintenance and dissemination of custom indices developed for and on behalf of Finvexʼs clients. Standard & Poorʼs Custom Indices calculates custom built indices using its knowledge and expertise built over the years. “Standard & Poorʼs” is a trademark of The McGraw-Hill Companies, Inc.
Darras explains: “Our past experience working with Standard & Poorʼs Custom Indices has been excellent. This agreement allows us to provide our clients with independent information from a reputable house.”
Darras explains: “Our past experience working with Standard & Poorʼs Custom Indices has been excellent. This agreement allows us to provide our clients with independent information from a reputable house.”
5 Jan 2010 - Pure Play and Finvex team up
Pure Play and Finvex join forces to develop and promote quantitative equity strategies in the European market.
Pure Play is a specialist house in quantitative equity strategies. Founders Nardin Baker and Paul Aaronson combine more than 50 years experience in in the design and management of quantitative equity portfolio strategies. Pure Play’s focus is around risk controlled equity portfolio construction and multi-factor investment models. Finvex is a boutique firm specialized in the distribution and structuring of index based solutions for the European market.
“Pure Play has a rigorous and risk controlled equity investment approach that leads the way for equity investing post-crisis" says Benedict Peeters of Finvex “Our partners combine recognized academic authority with vast field of expertise in risk managed and multi-factor equity investing” adds Joakim Darras, co-founder of Finvex.
Nardin Baker explains: “This partnership allows us to offer our robust equity investment technology to the European market through professionals who thoroughly understand our approach and know how to customize our offer to client needs.”
Finvex and Pure Play will start promoting risk managed equity strategies to a wide range of European investors as of February.
IN THE NEWS
23 Jan 2012 - Finvex Group releases second generation of R-Equity portfolio optimizer18 Oct 2011 - Jorn De Boeck joins Finvex Group
7 Sep 2011 - Rabobank International and Finvex Group enter into a strategic co-operation
13 May 2011 - Finvex Group releases R-Equity Engine for advanced portfolio optimization
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