Confidential Data Services

Fund Look Through

• 01  Description

  We perform a detailed analysis of all assets and liabilities inside a fund. This allows us to precisely identify its structure and exposure. The level of detail enables you as the investor to enhance your decision making process.

• 02  Main focus

  The analysis includes the processing of the following holdings:

  • Equities, Bonds, Commodities& Real Estate
  • Currency forwards
  • Bond and equity futures
  • Swaps such as CDS&IRS
  • Options and other derivatives
  • Repurchase agreements
  • Conventional investments
  • Funds of Funds are broken down to the ultimate underlying investment level

• 03  Strengths

  Our analysis focuses on disclosing the hidden components of your portfolio, resulting in a more transparent view. That allows you to achieve a significantly higher reporting quality. Obviously, this process is more powerful than the Fund Splitting service explained below.

• 04  Practical Use

  This service if often used by institutions that need to achieve a very high reporting standard, be it for in-house or regulatory purposes.

Fund Splitting

• 01  Description

  We break down the fund (including its subfunds if any) into its main components and aggregate the exposure per category. This approach results in an overview of a fund’s main components. The breakdown categories are fully customizable.

• 02  Main Focus

  The quality and structure of the analysis is very similar to the Fund Look Through process. But the output is different.

• 03  Strengths

  The strengths of this approach are the same as in the Fund Look Through process described above. Additionally, you save time and trouble because you don’t have to match any securities with a database or perform multi-level breakdowns.

• 04  Practical Use

  The Fund Splitting service is used by institutions that need to fulfill reporting standards while preserving resources. It includes everything you need without all the extra stuff.

Costs & Ratios

• 01  Description

  Apart from analysing the holdings of a fund, we also report static data, key ratios and fund costs. We can establish a customized data feed on a regular basis.

• 02  Main focus

  Our cost reporting focuses on audited Total Expense Ratios(TERs) to ensure the correctness of the data. Additional information we provide may include dynamic data like duration and leverage as well as static fund attributes, such as:

  • Legal fund name
  • Umbrella
  • Company
  • Registration
  • Active/passive
  • Base and share class currencies

• 03  Strengths

  We only work with audited and verified TERs to ensure data quality. Our ratios are double-checked. The static data comes directly from the asset managers and is reviewed by our in-house analysts.

• 04  practical use

  Institutions that need to fulfill regulatory requirements rely on the quality of our reporting.

Regulatory Reporting

• 01 Description

  Regulatory frameworks such as Solvency II require asset owner to gather and process data on a very high level. We collect the data you need, analyse it with our tools and send it to you in the required format.

• 02 Main Focus

  Our goal is to get you consistent and complete data for your Solvency II reporting. This includes all analyses necessary to display the true structure and exposure of the portfolios. With our input you can feed your systems and perform correct SCR and QRT calculations.

• 03 Strengths

  We offer you a pragmatic, no-nonsense solution for your Solvency II reporting:

  • We can provide fund data in the in the ready-made input format for Solvency-II S.06.02/S.06.03 templates
  • Deliver in the TPT format or other templates with a line-by-line look-through
  • Intermediate SCR and QTR calculations via a leading global risk manager

• 04 Practical USe

  Solution for the asset owners are highly customized to help them save time and licence costs. They are highly flexible to adopt to changing regulatory and client requirements. Currently, the monthly reporting for over USD 500 bn invested in third party funds is based on Finance-Doc data.

Customized Fund Rating

Fund Rating overview

• 01 Description

  Our holdings-based approach can be used to capture various risks, as well as the features of a fund. We have developed several of our own ratings. Additionally, we can use a rating supplied by the client or create an entirely new one based on client requirements.

• 02 Main focus

  All our approaches focus on concepts that have a strong theoretical foundation and are based on empirical evidence, both from academic research and our own experience with thousands of funds.

• 03 Strengths

  The strength of our approach lies in the analysis of the actual holdings of a fund. That allows us to capture the risks, structure and style more closely than with traditional fund ratings. Our rating can be fully customized to your requirements.

• 04 Practical use

  If you are a fund selector, our ratings will help you identify the funds that fit best with your strategy and current portfolio composition.

Our Ratings

• 01 C-Rating

  The C-Rating identifies performance constraints that could arise due to factors other than inferior management skill. Among those are transaction costs and liquidity. In general, the C-Rating captures factors that lead to the under performance of one fund compared to another, even if both are run by the same manager with the same strategy.

• 02 D-Rating

  The D-Rating indicates unexpected or underestimated risk, such as non-fitting return distributions or fat tails. It identifies the Maximum Drawdown, the difference between the dynamically and statically calculated Tracking Error, and the level of diversification, based on a risk decomposition.

• 03 P-Rating

  The P-Rating consists of 3 components: people, process and portfolio. The first measures the experience of the fund management. The second captures the “Return Gap”, e.g. the difference between the realized performance and the simulated buy-and-hold return of the portfolio over the same time period. The third measures the outperformance potential of the fund by calculating the “Active Share”. Together, the three factors capture manager skill and serve as an indicator for future performance.

• 04 ESG-Rating

  This is a multi-level rating based on environmental, social and governance criteria. This rating is designed to avoid exposure in certain sectors and identify potentially critical investments.

Customized Ratings

• 01 Description

  We can design and implement new rating procedures based on your requirements and our experience. Another possibility is to apply your existing ratings to the fund holdings, in which case you don’t need to be in the possession of the fund portfolios.

• 02 Main Focus

  We develop a rating that is tailor-made to your needs and your fund selection process. If you supply the rating, we apply it to your portfolio without you having to analyse single holdings.

• 03 Strengths

  Our customized ratings allow you to fully implement your ideas and create a methodology that fits your fund selection and monitoring process.

• 04 Practical Use

  Our ratings are successfully used in the fund selection and monitoring process of multiple institutional investors around the world.

Controlled Fund Selection

Fund Selection

• 01 Description

  Our selection process addresses several questions:

  • Did the past performance result from certain style tilts that will also persist into the future?
  • Are there any Alpha risks that need special attention?
  • Does the fund fit within the current structure and style of your portfolio?

• 02 Main focus

  Our goal is not only to identify superior funds – we also want to identify funds that fit best into your current portfolio. To achieve that, we analyse the style and risks of a fund, and also the impact of that fund on your current portfolio composition.

• 03 Strengths

  The main benefit of our analysis is that the fund selection is based on a best-fit approach, rather than just a best-in-class view. In other words, it is tailored to your current situation and not only provides you with the best funds, but also with those that fit best in your portfolio.

• 04 Practical use

  Our methodology can be used for the entire selection process, or as a second opinion on an existing short or long list.