Better understand the drivers behind performance
Investors and consultants are looking to have deeper discussions with asset managers when it comes to determining performance drivers. Analyzing return components is key to better understanding the impact of investment choices. Holdings Analysis provides context into how asset managers are actively allocating capital across equities – broken down by style, sector and geography – compared to both benchmarks and peer groups.
Consultants and investors have access to detailed manager holdings. Asset managers can view their own holdings and aggregated universe holdings, allowing better communication about how decisions differ from peers.
“By using Holdings Analysis, we were able to provide a clear analysis of our strategy compared to the peer group.”
– Consultant Relations Supervisor, Global Asset Management Firm
View Contributors to Return
Deconstruct the individual components of active return to identify contributors and detractors to performance. View how selection, allocation and timing decisions affected returns.
Perform Peer Comparisons
Identify historical and current overweight and underweight positions so performance data can be viewed in the context of peers as well as against a chosen benchmark.
Track Trends Over Time
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.
Highlight Investment Decisions
Illustrate the difference between product weights and peer weights, and highlight key investment decisions that show how your firm is adding value. Contrast and compare with peer positions.
Identify Style Drift
Verify investment philosophies. Determine if a manager is adhering to stated policies through style comparisons to both industry benchmarks and peer universes.
Answer Detailed Questions
Use historical and active allocation data to back up distinctive strategies for security selection. Ensure all teams are effectively advocating a consistent and clear message.