Insch Capital Management has launched a performance analysis tool for institutional investors, including IFAs and multi-managers, which highlights the need for improved returns or reduced fees among asset managers.
The Insch Quantratrend Risk To Revenue analysis, which breaks down investor returns and fund manager revenues using Bloomberg data, can be accessed through the Insch Capital website. It comprises four independent reports covering 247 funds from 14 fund management groups based in the UK, Switzerland and Lichtenstein.
Analysis is currently focused on Oeics and unit trusts from the six biggest publicly listed asset managers in the UK, including Aberdeen, F&C, Henderson, Jupiter, St James’s Place and Schroders. Insch intends to expand the database over time but can provide analysis of other fund management groups that manage equities and bonds on request.
R2R is concerned with managers of equities and bonds because these are easily quantifiable. Other asset classes are seen as too complicated to analyse using the R2R model.
R2R can look at the current performance of managers on the database, select an annual fixed return benchmark of their choice and take into account overhead costs and fees, analyse individual funds from each manager on the database and input changes in factors such as bond yields and stockmarket indices.
Chief executive Christopher Cruden says: “R2R shows how traditional asset managers are doing rather than how they say or think they are doing but what it cannot calculate is how much more traditional funds would lose through redemptions when they start to suffer market losses.”