About the client

A UK-based asset management firm wanted to develop a quantitative and objective framework to determine the relative attractiveness of various asset classes

Client challenges

• Selecting relevant factors and weighting across asset classes
• Inadequate granularity in performance evaluation
• Complexities in comparing qualitative and quantitative metrics
• Fragmented risk analysis across asset classes
• Inefficient asset class benchmarking and lack of actionable outputs from raw data
  

Our solution

Crisil team:

• Introduced a structured scorecard approach combining top-down metrics (macro trends, geopolitical events, market sentiment, global liquidity) and bottom-up inputs (company fundamentals, earnings growth, cash flow analysis)
• Developed a customized weighting mechanism tailored to client’s strategic focus
• Built a scorecard at the granular level incorporating sub-categories within each asset class
• Integrated a range of sub-factors, including asset-specific risks such as duration (for fixed income), vacancy rates (for real estate), and counterparty risk (for alternatives) 
• Embedded risk-adjusted scoring across all factor layers
• Benchmarked attractiveness scores against historical trends and relevant peer data
• Translated scorecard results into decision-ready metrics 

Impact and results

• Comprehensive
  Portfolio visibility across asset classes
  
  
• 40%
  Less time spent on asset class analysis, freeing bandwidth for strategy
  
  
• 10+
  sub-factors analyzed per asset class, driving deeper insights
  

About Crisil Integral IQ

Crisil Integral IQ delivers solutions and actionable intelligence to top financial institutions, driving strategic transformation, risk optimization, and operational excellence. Our offerings across research, risk, lending, analytics and operations have empowered clients to navigate complex markets, mitigate risks and unlock new opportunities. Our domain expertise, innovative solutions, future-ready technologies such as AI and data science give clients the confidence to accelerate growth and achieve sustainable competitive advantage. Our globally diverse workforce operates in the Americas, Asia-Pacific, Europe, Australia and the Middle East.

Questions

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