Unigestion, a Switzerland-based financial institution, has deployed Shortfall and Windfall Optimized Portfolios (SWOP), a new financial system developed by financial software development firm Sage.
The SWOP uses mathematical modeling to find the portfolio allocation that will maximize the investor’s return while minimizing downside risk. Unigestion has implemented this mathematical software for its Family Investment Office (FIO) department. Moreover, Unigestion has extended the use of SWOP to its offices in other countries.
Additionally, Sage is planning for improvements to SWOP that would support financial institutions of any size.
Jean-Luc Freymond, CEO of Sage, said: “SWOP seeks to maximize the extreme gains during rallies and minimize extreme losses during crashes, something we consider essential in today’s volatile market environment. As always, Sage will seek to let financial professionals to focus on what they do best: managing money and monitoring risk, not managing systems.”