Article: What are your managers unique investment exposures?

June 11, 2020

Many investors today have turned to factor investing as a systematic and cost-efficient way to achieve exposure to a particular factor premium, such as Value or Momentum, or to a specific set of custom factors. To achieve their goals, investors need to determine the unique investment exposures they seek to balance and diversify their portfolios. From there, they must get down to a short list of managers capable of fulfillling those goals. Without the right tools, the manager selection process can be cumbersome and time-consuming; with the right tools you can be sure you’ve found the managers that fit your portfolio best.

Similyzer™ is our new first-of-its-kind, comprehensive holdings-based comparison tool that makes the manager selection process a lot faster and easier, helping you save time and money. It speeds up the process by narrowing down the manager universe, identifying several candidate funds that could achieve your investment goals. 

Similyzer™ allows you to:

  • Quickly search for similarities and differences on any subset of 130+ factors for all 28,000+ funds in Morningstar and eVestment databases.
  • Gain a very focused understanding of how funds are similar and how they differ from one another.
  • Identify which of your funds are effectively just duplicating another fund’s exposure.
  • Find funds that naturally hedge your portfolio.

Shown below is a hypothetical example of an asset owner’s search on the Fidelity® Contrafund® Fund, a fund that might be a good fit for their portfolio based on its unique investment exposures of high Growth and Short Term Momentum. This report drills down to reveal similarities and differences on individual sub-factors, region distribution and sector distribution when it is compared with its most similar competitor from T. Rowe Price

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Investment Metrics, a Confluence Company, is a global leading provider of investment analytics, reporting, data and research solutions that help institutional investors and advisors achieve better financial outcomes, grow assets and retain clients with clear investment insights.
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