AMPs take a systematic approach to risk management, utilizing both technology and human expertise. This starts when you select the AMP that reflects the level of risk you are comfortable with and your desired returns profile. AMPs then model risk across several factors, including individual and macroeconomic factors like sector, geographic exposure, interest rates, and currency. They are trained using past performance, macroeconomic, and company financial data, and tested against alternative scenarios to ensure they are more resilient to black swan-like events. Finally, human risk experts with decades of experience and deep domain expertise provide heuristic guard rails as an additional layer of risk mitigation.
If you have any other questions or would like to take a deeper dive into how AMPs work, please email us at membership@artafinance.com.