FUNDSaiQ:

Finding the best fund managers can be a daunting task

There are more than 270.000 funds available for sale in Europe, including share classes. There are 1.800 stand alone funds in the category for Global Large Cap Equities, and 1.300 Large Cap European Equities. Finding which fund to buy may be a daunting task. The fund flows have been going mainly into passive funds. Given the limited number of managers that beat their benchmarks, investors who lack proper tools to evaluate managers, will typically choose a passive alternative.

FUNDSaiQ will help clients identify fund managers that consistently beat the best passive alternatives in a given category. We will also empower clients to select funds that meet high criteria for sustainability. We are very selective. Only 2-3% of the managers meet our criteria. Finding the best active managers that outperform can add a lot of value over time. A passive fund will underperform its benchmark with its fee and potentially also with its ”implementation shortfall” (friction cost when investing to replicate a benchmark).