The Problem

To provide more value to clients, this asset manager required an independent way to demonstrate value beyond adhering to the investment philosophy. They needed to be able to prove investment skill.  It was also a requirement by the investment management team that their due diligence reporting included factor and risk exposure data in regular review meetings with their clients. These reports would then be used to entice new mandates in prospect meetings and enhance existing client relationships.

Additionally, the operational burden of uploading fund data on over 200 funds in different formats and frequencies was causing internal inefficiencies on reporting.

The Solution

Using holdings-based factor analysis enabled the asset manager to provide a deeper understanding of factor exposures and demonstrate the key drivers of performance, in addition to external strategy validation.

The peer analysis functionality gives the asset manager the ability to demonstrate their added value, quickly, when being measured against competitors. This has been key when differentiating themselves during a mandate due diligence process.

Our Use Case

We use Style Analytics in multiple ways, from sales pitches and consultant relations through to our due diligence and internal review process. We can communicate and put into context internally and externally how our funds are performing through different types of style exposures. The insights gained can be further challenged by the portfolio managers with regards to risk and fund exposure. Style Analytics’ performance attribution model gives us the ability to drill down into individual factor performance and being able to attribute this to performance instils trust in our firm’s robust investment approach.

Portfolio AnalyticsChief Risk Officer

The Result

Style Analytics was able to provide independent verification at both the fund and strategy level, thus enabling the asset manager to prove value beyond simply adhering to a stated philosophy. This analysis is used as part of the investment committee meetings reviews. Key charts created in the process are exported to use in pitch decks, as they communicate the philosophy simply and clearly. Turning hard to read data, into easy to interpret charts and graphs.

Automated report generation with robust and customisable monthly data outputs exported to a repository for internal use. Use has widened to portfolio managers and business development teams to gain deeper insight to improve the pitch process.

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