First Allied manages high-net-worth client portfolios with SAS®

Analytics helps leading independent investment firm in smarter, faster decisions

To help make better recommendations for high-net-worth clients, First Allied builds and maintains sophisticated financial models using SAS®. SAS Business Analytics arms the company with up-to-the-minute analyses and unique, proprietary reflections of market perspectives and risk tolerance.

"We rely on SAS for many of our major investment decisions," said Jeff Mindlin, Chief Portfolio Strategist at First Allied Asset Management.

First Allied's reputation as one of the premier broker/dealers for successful independent financial advisors is supported by the contribution of its asset management division, led by Mindlin. Handling more than $1.1 billion in client holdings while managing more than 100 different investment models, First Allied Asset Management utilizes SAS Business Analytics to run weekly analytical models that provide updated visibility into exchange traded funds (ETFs) individual stocks, sectors and the top 1,000 stocks (by market capitalization).

"Our chief investment officer is a Chartered Market Technician (CMT). Our challenge is to translate the most critical charts and patterns into SAS models that identify the measures he focuses on," Mindlin said. "We're running a very deep set of calculations and metrics across numerous periodicities. With daily pricing data from Morningstar and other sources – some extending back decades – we're looking at tens of millions of rows and several gigabytes of data."

Risk management is also a consideration. "We run our portfolios through proprietary SAS models to identify potential risk exposures – beta and correlations to stocks, bonds and commodities, and more granular size, sector, style, country, credit, and interest rate exposures and so forth," said Mindlin. "We can see if our portfolio risks align with our market outlook and themes."

Mindlin noted that the SAS deployment is low impact and easy to maintain. "Even with resource-intensive routines, our remote virtual machine has kept our cost low," he said. "While we modify the routines, I am able to maintain it without any dedicated resource or outsourced contractor."

"First Allied is an excellent example of how SAS helps investment and asset managers make decisions and analyze risk," said David M. Wallace, Global Financial Services Marketing Manager at SAS. "To successfully support critical decisions on behalf of clients, analytics helps global and regional capital markets firms to quickly glean unique insights from big data."

Learn more about SAS Business Analytics and SAS solutions for banking.

About First Allied

First Allied is a full-service, independent broker/dealer with nearly 1,000 financial advisors in 500 branches located throughout the United States. First Allied includes independent broker/dealer, registered investment adviser, wealth management, insurance services and pension services businesses. Founded in 1994 as a privately held company, First Allied remains committed to its vision of providing independent financial advisors with innovative products, unparalleled education, differentiated financial products, integrated wealth management solutions and comprehensive access to subject-matter expertise. First Allied fosters an environment that serves and nurtures advisors who want to increase the productivity, size and profitability of their individual practices. In November 2011, the First Allied management team and Lovell Minnick Partners, a private equity firm focused on investments in the global financial services industry, completed the acquisition of First Allied. For more information about First Allied, please visit firstallied.com.

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