Econometric models 2.0 targeting MENA SWF and Institutional Investors

SYMETRICS B.V. and VEROCY B.V., both Netherlands-based companies, have signed a cooperation and resellers agreement in which VEROCY will be introducing SYMETRICS applications and services to potential clients in the Middle East and North Africa (MENA). SYMETRICS B.V. has appointed VEROCY B.V. on an exclusive basis to resell SYMETRICS B.V. software and services on the terms of this agreement in the MENA Territory

16 December 2016


 SYMETRICS B.V. and VEROCY B.V., both Netherlands-based companies, have signed a cooperation and resellers agreement in which VEROCY will be introducing SYMETRICS applications and services to potential clients in the Middle East and North Africa (MENA). SYMETRICS B.V. has appointed VEROCY B.V. on an exclusive basis to resell SYMETRICS B.V. software and services on the terms of this agreement in the MENA Territory (1).


Looking at the financial-economic order after the global financial crisis, BREXIT and low oil prices, economic scenario thinking has received increased traction. In formulating scenarios, economic theory or investment beliefs may be useful but they may also cloud judgements due to untenable assumptions or asymmetric information. Dutch-based Symetrics believes there is a need to focus on what monetary, fiscal and real economic policies are about. Whether one associates the financial crisis with secular stagnation, a shortage of safe assets, or an excessive elasticity of financial markets, forward looking scenarios are needed to mitigate, asses or counter future risks or threats.


The latter scenario thinking is not only applicable for Europe, the Americas or Asia, but increasingly important for the quick changes currently being implemented in the countries of the Middle East and North Africa. Conventional investment fund management will need to be changed to address not only global financial risks, but also to integrate and support regional and national policy changes. The impact of Sovereign Wealth Funds (SWF), Islamic Finance, restructuring of national economies or diversification, will need to be assessed and put into more flexible and shock proof scenarios, than has been done before. The need to add behavioral rules to econometric models is a necessity for future asset management or stress testing operations. 


Symetrics has been recognized as being at forefront of developing the next generation econometric models. The company is committed to modeling adverse effects on asset portfolios from potential geopolitical, economic or monetary shocks. Symetrics developed SyMath, a new econometric model to enhance performance of assets under management and to assure compliance with regulatory requirements. It is capable of linear and non-linear regressions (behavioral science algorithms). SyMath is software based on Wolfram Mathematica, a programming language that is commonly used in the world of Academia, but is also very suitable for finance.


SyMath is designed to examine both linear and non-linear financial developments, in relation to asset portfolios and measure effects of various economic scenarios on returns on investment. By adding behavioral rules and economic structure to SyMath, model output gains relevance while dependency on extensive historical datasets is reduced. Rational investors can for example be replaced with naïve, risk averse or trend-following investors. This allows you to build a much richer insight into your risk profile. It enhances strategic and tactical portfolio optimization significantly.​


With SyMath you can stress-test your investment portfolio under a suite of real-world economic scenarios, hedge portfolio’s for future risks, simulate human investment behavior, measure portfolio performance in terms of various performance indicators, enact efficient frontier and liability analysis, gain insight in the economy and various risk profiles, all in real time. SyMath is also very much suited as a model for second opinions and reverse stress-testing clients’ economic scenarios. SyMath simply allows you to substantiate your investment strategy more effectively.


The combination of Symetrics and VEROCY, bringing together econometrics with the socio-economic, geopolitical and regional insights, will help clients to confront and validate economic assumptions and assist them in setting realistic parameters.


 VEROCY


Verocy is a Netherlands-based integrated risk consultancy, focusing on the MENA region. Its main areas of expertise include energy, defense, security, geopolitical risks, and financial institutions. Based on its vast network and strategic alliances, as well as over 25 years of experience in the MENA region, Verocy provides consulting, M&A advise, financial and technical due diligence, country risk analysis, and defense-security support. The company’s website is www.verocy.com. Contact details: Info@verocy.com or cyril.widdershoven@verocy.com


 SYMETRICS


Symetrics has been recognised by The FinTech50 2015 as one of the hottest FinTech businesses in Europe. Now in its third year, the annual list recognises FinTech companies across Europe with the potential to become a game-changer in financial services technology or the competitive staying power to continue being one. The 50 FinTechs on this year’s list were selected from 780 FinTech companies across Europe by a panel of industry experts, including leaders from Google, Microsoft, Fiserv, American Express and tier-one VC investors active in the sector. Symetrics was selected as part of The FinTech50 2015 and offers institutional investors with SaaS based risk management software, SyMath. SyMath can stress-test investment portfolios using real-world economic scenarios, protect portfolios for future risks, measure the effects of adverse shocks on ROI and simulate human investment behaviour. Symetrics also aims to provide its technology to individual investors to enable them to manage their own portfolio and assess their risk profile independently.


 (1)  Middle East North Africa (MENA) Applicable Countries:
Algeria, Bahrain, Djibouti, Egypt, Iran, Iraq, Israel, Yemen, Jordan, Kuwait, Lebanon, Libya, Morocco, Qatar, Saudi Arabia, Somalia, Syria, Tunisia, UAE.

©VEROCY

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