Competitive Alpha Report (quarterly)

The Competitive Alpha Report arose from a desire to monitor investment management performance relative to the performance achieved by managers across the mutual funds industry. The approach differs from traditional measures of performance in that rather than using a series of weighted indices as the performance benchmark, we use the actual performance of competing managers.

The methodology involves the calculation of industry-wide asset-weighted returns (AWR) for each of 14 asset classes. The AWRs are based on year-to-date returns for each fund as published by Morningstar. Asset and activity data is extracted from Investor Economics’ mutual fund databases and matched to the Morningstar data to create weighted returns within each of the 14 asset classes. Competitive alpha for the target firm is then determined using results for the individual firm within and between the same 14 asset classes, reflecting the value-added return (on a year-to-date basis) for each asset class and the complex as a whole. The outputs provided include detailed asset class results for the target firm, its overall alpha, and the overall alpha for six competing mutual fund firms initially selected by the client. Sample outputs or additional details are available upon request.

price available upon request

If you would like to subscribe to any of our industry studies, or wish to learn more about them, please call us at (416) 341-0114.