New York - A core concept of asset allocation, use of proper tools and technology, is part and parcel of successful portfolio management, yet many mutual fund firms do not provide tools to help investors with this important undertaking, according to a new report issued by Corporate Insight. The New York research firm takes an in-depth look at asset allocation tools provided by eighteen mutual fund firms.
In its fifty-three page comprehensive report, Corporate Insight examines asset allocation tools from eighteen mutual fund companies using the following criteria:
* Does the tool feature a questionnaire or is actual account data used to generate results?
* How detailed is the asset allocation portion of the tool (e.g., does the tool break down the asset classes into industries)?
* Is the tool easy to use and understand? Are helpful charts and graphs available to complement text?
* Does the tool provide specific investment suggestions or does it stop at asset class recommendations?
"We were surprised to find that only nine of the eighteen mutual fund firms we track provide asset allocation tools to their investors and advisors, and of those nine, only four firms put all the pieces together to provide valuable resources for both clients and prospective investors alike," said Chris McNeil, Senior Analyst at Corporate Insight and author of the Mutual Fund Monitor report. "We believe the overall value of an asset allocation tool is directly correlated with their level of sophistication. During our research, we came across a variety of different tools that range from complex to extremely limited. Among the most useful tools were those that allow users to create comparisons between current and target portfolios."
Source: Corporate Insight
Register or login for access to this item and much more
All Digital Insurance content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access