Custom Universes Now Available in Holdings Analysis

26 Apr

Custom Universes Now Available in Holdings Analysis

Consultant and investor clients now have a new way to use Holdings Analysis to perform apples-to-apples comparisons on a targeted list of investment managers you are researching on eVestment as part of your due diligence process.

What’s new?

You can now create customized, targeted peer groups at the firm and private level to use during your analysis throughout Holdings Analysis. A common issue we were hearing from clients was that our curated list of eVestment peer groups were too broad to use for analysis at the holdings level. This latest update should help address those concerns and help our clients perform more granular comparisons of a shortlist of like managers.

How can I use it?

With customized peer groups, you can now make more relevant comparisons between managers and universes of other similar managers, based on whatever criteria is most relevant for you. Your peer groups can become increasingly smaller as you narrow down your target funds down to a very specific group of finalists. Understand how this shortlist achieved their performance – which helps you tell a data-driven story about why you are recommending one fund over another.

  • Deconstruct the individual components of a manager’s return to identify contributors and detractors to performance. View how selection, allocation and timing decisions affected returns.
  • Identify historical and current overweight/underweight positions so performance data can be viewed in the context of peers as well as against a chosen benchmark.
  • Review trends in a portfolio’s performance and evaluate allocation and policy decisions. Track selection, allocation and timing decisions on a style, sector and regional basis.
  • Identify style drift and verify investment philosophies. Determine if a manager is adhering to stated policies through style comparisons to both industry benchmarks and peer universes.

Not yet a client?

Investors and consultants use Holdings Analysis to perform attribution analysis by better understanding what is driving manager performance – compared to both benchmark and peer groups – and broken down across style, sector and geography. Contact us today to learn more.