How to Measure, Manage, and Avoid Geopolitical Risk in 2015

• Which S&P 500 constituents are most impacted by Ebola?
• Which of your holdings have revenue coming from China?
• How do you determine country of risk for multi-national organizations?

In our latest Emerging Ideas webcast, How to Measure, Manage, and Avoid Geopolitical Risk in 2015, see how geopolitical events impact your portfolio and holdings with FactSet GeoRev data, now integrated with our Portfolio Analysis suite. GeoRev shows you the true geographic exposure of your holdings and portfolios and has quickly become one of the most popular datasets among FactSet users as a way to monitor macroeconomic risk in portfolios and generate alpha in models.

For example, Samsung is typically categorized as 100% geographic exposure from South Korea, its country of domicile. In reality, Samsung’s exposure in South Korea is closer to 10%, with 90% from hundreds of other countries globally. This data paints a much different picture of Samsung’s geopolitical and macroeconomic risk.

On a portfolio level, let’s look at the Russell 1000 as an example. While 100% of the Russell 100 is domiciled in the U.S., only half of the total revenue for Russell 1000 comes from the U.S.

With your own portfolios on FactSet, overlay GeoRev to gain or minimize exposure strategically. Rather than limiting exposure to a country, like Ukraine, you may choose to lower exposure specifically to consumer staples in Ukraine and increase exposure to utilities. The integrated buy/sell utility can then help you reposition to gain alpha.

For firm-wide assets, use Security Exposures combined with GeoRev to identify positions across the firm that have specific exposures.

Watch the full webcast.