Inalytics was recently features in a New York Times article on coaching and fund management. The article discusses the positive effect that coaching can have on understanding and improving investment performance, while looking at the hedge fund and asset management industries’ growing receptiveness to the idea.

The full Deal Book article can be read here.

Research Paper 08 written in collaboration with PIRC demonstrates the link between good corporate governance and superior investment returns for Asset Owners.

 

Rick Di Mascio and Graham Dixon were interviewed by David Grossman about the Transition Management industry, this was the second part of his four-part series. It was on BBC Radio 4, Episode 2, called How You Pay for the City. You can listen to it here.

Institutional investors such as pension funds are the most dominant force in world markets. But, asked David, how much do we know about the different intermediaries involved in managing our pensions and how much money they take for their work? What does the data about the dozens of funds in the Local Government Pension Scheme tell us about how all our pensions are being managed? He also investigated the role of the most important bank you’ve never heard of – the global custodian.

BBC Radio 4’s Money Box is featuring Inalytics in their “How You Pay for the City” four-part series. Episode 1 was broadcast at 12 noon on Saturday 3rd August and you can listen to it here.

In this series, David Grossman investigates how we as savers, investors and consumers pay the salaries and bonuses of bankers and investment managers and asks whether they’re worth it.

It may seem as if the City creates money out of thin air through the skill of some of the brightest people working in the economy. But all the money that goes into the Square Mile and beyond has to come from the wider economy: from our pensions and investments, from the interest rates we’re charged, from the cheap money that we as taxpayers have provided to the banks since 2008 and even from the additional but hidden costs that we pay for consumables like food and fuel.

The series begins with an investigation into the companies that manage our investments. David talks to the campaigners trying to force the industry to be more transparent about the true cost of investing and hears from critics who claim the industry has grown to be so large and complex, it’s more geared to serving itself than its customers. And he assesses whether there’s any evidence that most fund managers are worth the high fees they charge.

The awards take place in New York on December 4th and recognise excellence in five categories including Core Investments, Alternative Investments, Strategy & Tactics, Servicing, and Holistic.

Inalytics is delighted to have been nominated in the Servicing category for Transition Management. The company has been recognised for its work during the past year with UK-based pension schemes who were questioning their transition management costs. For more information on nominees please visit the aiCIO.

PIRC, Europe’s largest independent governance research and shareholder voting adviser, and Inalytics, who measure investment skill, have announced a new service for pension funds combining their respective strengths.

The new service is provided by Inalytics, where they have enhanced their existing service of benchmarking manager skill by incorporating PIRC’s Corporate Governance Ratings for quoted companies in the UK, the USA and Europe.

The service brings together benchmarking of investment skills with analysis of the governance risk carried in equity portfolios. This combination uniquely allows pension funds and others to see, at a glance, the profile of their portfolios from a governance perspective, alongside the ability of their asset managers to meet performance targets. This innovative arrangement will enable clients to combine the Inalytics ranking of asset managers with PIRC’s Corporate Governance Ratings.

PIRC’s Corporate Governance Ratings offer an independent view of where governance risks may be embedded within a company or portfolio. The Ratings provide an assessment of the presence or absence of particular governance structures and policies which have a material impact upon the company’s performance. The Ratings draw on approximately 100 data points, covering four main areas: audit and reporting; the board; executive pay; and shareholders and capital.

The value of PIRC’s Corporate Governance Ratings is highlighted in Inalytics Research Paper 08.

Rick Di Mascio, the founder of Inalytics, said “We believe that PIRC’s governance ratings will be a significant value enhancing addition to our manager skill analysis. We are confident that the combined service will bring significant benefits to clients; allowing them to examine governance risk alongside our assessment of manager skill in their equity portfolios.”

This is the first in a series of papers addressing interesting questions posed by our clients. In this case Nick Greenwood, Pension Fund Manager of The Royal County of Berkshire Pension Fund asked:  “Do highly concentrated portfolios perform better than more diversified ones?” He kindly posed a second question of equal interest and we will be covering that in a subsequent paper. If you would also like to suggest a topic of general interest we would be delighted to see if we could investigate it.

This paper introduces a unqiue collaboration between Inalytics and PIRC. This paper analyses whether the share prices of companies with good governance outperform the market, and by extension if poor governance is associated with underperforming share prices.