Fabric, a startup founded by veteran risk manager Richard Bookstaber, announced the official launch of its next-generation risk management product, Fabric for Advisors: Insight. Powered by MSCI's factor model, the application brings the factor-based approach used by the world's largest banks, asset managers and hedge funds to individual investors.
"Through our platform, we're providing the wealth management industry with institution-level risk management," said Bookstaber. "With access to a first-of-its-kind factor-based model, advisors everywhere will have the tools to empower individual investors."
The standard approach for off-the-shelf risk management platforms is to look at history as a guide to forward-looking risk, Bookstaber explained. Rather than depending on a method that looks backward, which has produced unreliable results in recent years, he said Fabric's technology is factor-based and forward-looking. The platform sources analytics from MSCI, the world leader in factor modeling.
The platform also considers exposure to ESG, most notably climate change.
In the run-up to this month's launch, more than 500 advisors signed up for a demo.
"Thanks to years of discussions with advisors about their concerns with navigating risk, we have created a model that simplifies complicated risk concepts into approachable investment insights," said Fabric Co-Founder and CEO Govinda Quish.
Fabric's application is geared toward advisors who want to differentiate themselves and grow their practice by engaging in a discussion of risk with both existing clients and prospects.
For more information about the platform, visit Fabric's website, www.fabricrisk.com.
Founded by Wall Street veteran Rick Bookstaber, Fabric provides institutional-quality risk management technology to individual investors through their financial advisors. Fabric employs agent-based risk models powered by MSCI's industry-leading factor framework to map out forward-looking risk. By recognizing the narrative nature of risk and distilling complexity into understandable investment insight, Fabric facilitates the deep, differentiated risk conversations that build trust and confidence for the advisor's clients and prospects. www.fabricrisk.com
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