Are you overdiversified? Do your funds have high overlap in their investment styles or holdings? Identifying fund consolidation opportunities can deliver more effective asset allocation by helping you clearly track your investments and better diversifying your portfolio, manage risk and avoid exposure overlap. 

Similyzer™ is a comprehensive holdings-based comparison tool that helps identify fund consolidation opportunities by quickly searching for similarities and differences among over 28,000 funds. No other tool will identify which of your funds are effectively duplicating another fund’s exposure. Similyzer™ helps you reap the many benefits of fund consolidation including effective asset allocation, saving time and saving money. 

Investment consolidation can save you money – higher investment amounts often qualify for lower fees and gives you a stronger negotiating position. Investment consolidation can also result in better performance since it’s easier to have stronger relationships because you’ll have fewer managers. There’s also a lower likelihood of investment or style overlap. 

Similyzer™ allows you to find all the funds that are similar to any target fund based on attributes you choose. The below figure shows how similar the BlackRock Advantage ESG US Equity Fund is to its closest competitors, how it compares on performance, risk, and by regional and sector distributions.

Similyzer: Reaping the benefits of fund consolidation

Leave a Reply