The Financial Time Group is looking to provide a risk, charges and risk-adjusted performance ratings...
The Financial Time Group is looking to provide a risk, charges and risk-adjusted performance ratings service for UK Oeics and unit trusts for launch over the summer, writes Robert Stock.
Investment Week understands that the service, delivered by the internet, is to use a US portfolio analysis system to calculate the comparative risk/reward histories for funds.
It will also provide ratings on charges and, in a move which it sees as its defining difference, will give each fund a risk rating so investors can compare levels of risk in different unit trusts and Oeics. The group is looking to use its brand to carve out a place in what is becoming a crowded market place for comparative fund analysis. It aims to present the information in a palatable form that both intermediaries and the general public can recognise and trust.
That will bring the FT service into direct competition with the recent launch of Morningstar, the US web-delivered system. Morningstar launched in March and, like the planned FT Group product, its system is based around risk-adjusted performance history.
It will also bring the FT Group service into competition with S&P and Lipper, both of which tabulate comparative information and present it in user friendly forms.
The FT Group is not seeking to compete directly with S&P's Fund Research which combines a quantitative screen with fund manager interviews and qualitative analysis of funds. The FT Group is currently organising meetings with asset managers to explain its new system.
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