Fund Management
New Web Tool Launched To Make Fund Choices More Efficient, Accurate
This publication brings latest news of moves and appointments in the global wealth management industry.
A new web tool designed for investors to choose funds more
efficiently, has been launched by Israel-based fintech firm
SharingAlpha. Its
founders say it surmounts problems with other ways of
selecting portfolios.
The tool ranks funds based on qualitative as well as data-based
methods; it even rates the ratings assigned to funds by other
organisations.
The firm cited recent research published by Morningstar showing
that traditional rankings that are generated by fund rating
agencies are mainly based on historical performance. These fail
to identify winning funds. On the other hand, rankings that are
based on qualitative analysis, taking into account factors such
as fees, manager motivation, capacity and active share work 70
per cent of the time and give a more robust overall score.
SharingAlpha rates the individual raters in terms of their talent
in selecting funds. Their fund selection track record will enable
the raters to test their analysis, and if they choose to the
raters will be able to present their proven track record to
existing and potential clients, SharingAlpha said.
The website is free to use and covers over 90,000 funds listed in
73 different countries. As far as its revenue model is
concerned, SharingAlpha will charge fund managers a licensing fee
for presenting their ratings on their marketing material, the
firm told this publication when asked about the matter.
“Our vision is to offer the investment community a better way to
select winning funds and at the same time to offer fund selectors
the option of building their own proven long-term track record.
It’s about time that funds are ranked on the basis of parameters
that have been proven to work and fund selectors will be judged
according to their ability to add value to investors,” said Oren
Kaplan, chief executive and co-founder, SharingAlpha.
To see a recent interview by this publication with another
investment and fund analysis firm, Stamford Associates, see
here.
