Traffic light analysis has been used by the firm for seven years to help rate the correlation, performance, alpha, volatility, maximum loss and information ratio on funds and was brought in by former multi-manager head Richard Philbin.
Existing factors of the process which continue to add value will remain and new analytical factors have been added to support screening capabilities.
The updated tool evaluates historic consistency through risk and risk/reward factors and has an early warning system for short-term performance shifts.
Other changes to the tool include the extension of its database to include offshore funds with three-year track records.
Multi-manager head Dean Cheeseman says: “TLA has never been a black box approach to multi-management. In expanding the multi-manager team, we have strengthened our quantitative skills significantly and this has enabled us to invest in developing the TLA system and add new analytical tools to assist with fund screening and portfolio construction.”