April 19, 2010 03:00 ET

Unigestion Deploys Risk Management From SAGE

SWOP Used to Maximize Returns and Minimize Risk

GENEVA, SWITZERLAND--(Marketwire - April 19, 2010) - Unigestion, a financial institution with headquarters in Geneva, has rolled out a new financial system called SWOP which was developed by SAGE, a leader in financial software development.

The Shortfall and Windfall Optimized Portfolios (SWOP) uses mathematical modeling to find the portfolio allocation that will maximize the investor's return while minimizing downside risk. "SWOP seeks to maximize the extreme gains during rallies and minimize extreme losses during crashes, something we consider essential in today's volatile market environment," says SAGE's CEO, Jean-Luc Freymond.

With this addition, SWOP has become even more attractive to companies such as Unigestion, which has implemented this mathematical software for its Family Investment Office (FIO) department.

Unigestion faced the challenge of quickly adapting its practices to new market trends, and decided to change the mathematical algorithm it used for financial modeling. It had been equating volatility with risk, which was a very simple measure, and sought a more sophisticated portfolio allocation model. SWOP gave Unigestion that. (A detailed case study is available with SAGE representatives.)

The transition was so successful that after seeing the benefits SWOP offered over its prior model, Unigestion extended the use of SWOP to its offices in other countries.

For its part, SAGE was so pleased with Unigestion's success; it began planning improvements to SWOP that would make the module even more attractive to financial institutions of any size.

"As always, SAGE will seek to let financial professionals to focus on what they do best: managing money and monitoring risk, not managing systems," says Freymond.

About Unigestion

Unigestion ( manages $9.7 billion in assets for its institutions and high-net-worth individuals. It focuses on the active management of innovative strategies that will deliver consistently superior risk-adjusted returns within its clients' desired long-term asset allocation.

About SAGE:

SAGE SA ( is a software development company that services the global financial industry. Apart from SWOP, SAGE develops Prospero, another revolutionary product, offering clients to integrate front-, middle- and back-office systems. SAGE's goal: Help financial professionals focus on what they do best - managing money, not systems.

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