Algorithmics, now part of IBM, has forged an alliance with Axioma, a provider of multi-factor equity models, under which it will offer data derived from Axioma's multi-factor equity models as part of the Algo Risk Service, its hosted portfolio construction, risk management and reporting service.

Axioma Risk Models offer a wide range of regional and style-base models that are recalibrated daily, with re-estimations and production of factor exposures, covariance matrices, and asset specific risks. This is an important differentiator for this partnership in a market where monthly recalibration of equity factor models is the norm. With Axioma data available through Algo Risk Service, Algorithmics' clients can draw on reports from Axioma's multi-factor equity models to improve their equity coverage and consistency between their front and middle office.

Sebastian Ceria, chief executive of Axioma, said: "The benefits of working with Algorithmics are very clear to us. Most clients want to achieve modelling consistency between the risk-focused middle office and investment-oriented portfolio managers in the front office; our collaboration with Algorithmics provides that consistency of equity risk. Axioma's front office clients will enjoy consistent modelling with their middle office risk departments."

Andrew Aziz, executive vice president of buy-side risk solutions at Algorithmics, said: "Axioma's reputation as an innovator in equity modelling complements Algorithmics' commitment to innovation. For our clients, this relationship with Axioma offers modelling across all asset classes and the convenience of having the model as part of Algo Risk Service. Importantly, it also gives clients the flexibility to introduce patented equity modelling as part of their custom solution while maintaining consistency with the Axioma models used by their front offices. As we evolve our solutions for the buy side, we continue to recognize the importance of being able to offer customisable solutions to meet our clients' needs."