Capital IQ Releases Multi-Horizon US Fundamental Equity Risk Models

NEW YORK, May 24 /PRNewswire/ -- Capital IQ, a Standard & Poor's business, today announced the availability of its US Fundamental Equity Risk Models, a set of multi-horizon models based on its proprietary AlphaWorks fundamental factor library, GICS industry classification, and in-house Point-In-Time data sources.

The release is a culmination of extensive research assisted by Dr. Bernhard Scherer, Professor of Finance and member of EDHEC Risk, as well as other leading industry practitioners. Capital IQ risk models are distinguished by:

• A high level of risk forecasting accuracy for both short- and medium-term forecasting horizons
• Incorporation of the AlphaWorks fundamental factor library encompassing several hundred alpha signals; the models' robust style factors are designed to resonate with the investment processes of portfolio managers, and raise the standard for fundamental risk model factor construction
• Reliance on GICS industry groups, the most widely recognized standard for company classification
• Plug-and-play with Capital IQ's ClariFI and Xpressfeed products as well as third party and proprietary optimizers, risk analytics and data sets

Ruben Falk, product manager at Capital IQ stated, "Our US Fundamental Equity Risk Models were specifically designed to take advantage of our state-of-the-art factor construction and data aggregation capabilities, and client feedback from beta tests has validated the forecasting accuracy of our new models. We believe the models' style factors better reflect and align with the key building blocks typically used in alpha generation and portfolio construction and, therefore, have the highest degree of relevance for investment managers."

Carson Boneck, managing director at Capital IQ said, "We aim to constantly broaden our product range to provide complete solutions to investment managers, both through partnerships and internal development. The US Fundamental Risk Model is an important first step in expanding our products to further assist clients in their risk management processes. Notwithstanding this objective, our strategy continues to be to support third party risk content and analytics in order to let our clients choose among a mix of vendors on our platform." He continued, "Our initial risk model offering underlines our commitment to make industry leading risk analysis available to quantitative and fundamental investors alike. We are excited to announce this release, and look forward to the continual advancement of our risk content offering, along with the other research and analysis solutions in the Capital IQ product suite."

About Capital IQ and Standard & Poor's

Capital IQ, a Standard & Poor's business, delivers comprehensive fundamental and quantitative research and analysis solutions to over 4,200 investment management firms, investment banks, private equity funds, advisory firms, corporations, and universities worldwide. Its solutions are based on the Capital IQ Platform, Compustat, ClariFI, and AlphaWorks products, and offer an array of powerful applications for desktop research, screening, real-time market data, backtesting, portfolio management, financial modeling, and quantitative analysis. For more information, please visit Capital IQ's web site at www.capitaliq.com.

Standard & Poor's, a subsidiary of The McGraw-Hill Companies (NYSE: MHP), is the world's foremost provider of independent credit ratings, indices, risk evaluation, investment research and data. With offices in 23 countries and markets, Standard & Poor's is an essential part of the world's financial infrastructure and has played a leading role for 150 years in providing investors with the independent benchmarks they need to feel more confident about their investment and financial decisions. For more information, visit www.standardandpoors.com

SOURCE Capital IQ