Fast reading
- Risk has become more dynamic, interconnected and time-sensitive, requiring a more flexible approach than traditional, single-horizon models.
- Our enhanced MultiFRAME framework combines multi-factor and multi-timeframe analysis to capture evolving exposures – from AI-driven market concentration to geopolitics and trade – revealing risks that may otherwise remain hidden.
- Fully embedded in how our Global Equities team constructs portfolios, MultiFRAME helps translate complex risk insights into clearer, more disciplined investment decisions across changing market conditions.
Applying our MultiFRAME model: What does risk look like today?
This report builds on our 2022 edition of Equitorial (‘What price risk?’) and serves as a natural evolution of that paper. At that time, we set out the foundations of MultiFRAME – our Multi-Factor Risk and Attribution Model for Equities – and outlined how it enhances our understanding of portfolio risk.
We argued that traditional risk systems – often static, backward-looking and narrowly focused – were insufficient to navigate an increasingly complex and rapidly evolving market environment. These conclusions have only strengthened over time.
Since 2022, investors have experienced one of the most challenging and dynamic periods in recent financial history. Inflation shocks, aggressive monetary tightening, geopolitical fragmentation and sharp factor rotations have all highlighted the importance of viewing and understanding risk not as a single, stable concept, but as something that evolves across multiple dimensions and time horizons. As we noted previously, relying on a single lens of risk can obscure underlying exposures – particularly during periods of market stress.
Inflation shocks, aggressive monetary tightening, geopolitical fragmentation and sharp factor rotations have all highlighted the importance of viewing and understanding risk not as a single, stable concept, but as something that evolves across multiple dimensions and time horizons.
Today, risk management is arguably more critical than ever. Markets have been defined not only by material macro shifts, but also by the speed and non-linearity with which risks evolve and interact. Traditional approaches that rely on stable relationships or single-period optimisation have been repeatedly challenged.
In this context, one of the most important developments has been the increasing need to assess risk across multiple timeframes simultaneously. Investors must reconcile short-term volatility, medium-term cyclical dynamics and long-term structural trends –often pulling in different directions. As noted in academic and industry research, even long-term investors must meet near-term expectations, creating tension between horizons and demanding a more integrated approach to risk management.
Since 2022, the MultiFRAME model has evolved meaningfully. While the core philosophy and tool remains intact, enhancements to factor coverage, data processing and integration within the investment process have made it more responsive and more actionable. It now plays a central role not only in monitoring risk, but in shaping portfolio construction decisions.
In the 2026 edition of Equitorial, we will revisit MultiFRAME in the context of today’s market environment, highlighting how risk has changed, the key themes we are monitoring, and how our approach enables us to navigate uncertainty with greater clarity and discipline.
Figure 1: Key risks we are monitoring
Equitorial: What does risk look like today?
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