Portfolio Style Drift Check with StyleCheck

Why should Advisors Care?

For Financial Advisors who implement portfolios with mutual funds, you are typically using mutual funds to achieve a targeted risk and return characteristic for a portfolio's specific asset allocation.

What happens if the mutual fund does not exhibit the risk and return characteristics you are seeking?

For example, suppose you want to allocate 20% of a client's portfolio to the "Large Cap" asset class. So you search for "Large Cap" mutual funds using various fund screening tools, check their past performance and other characteristics, and select several "Large Cap" funds for the client's portfolio.

Unfortunately, several of the funds you selected do not behave like "Large Cap" funds. Using StyleDriftScorecard.com and Returns-Based Style Analysis, you discover that the first fund you selected is most correlated to the "Russell Mid-Cap 1000" index. In addition, you find that the fund's "Style Drift Scorecard" is "High" because the index most correlated with that fund is changing over time. Now you are wondering if you want to use that fund because you cannot depend on that fund manager to maintain a consistent style for your client's asset allocation. And you also realize that manager is pursuing "more risk" than normal because the fund has the highest correlation with a Mid-Cap index instead of a Large Cap index.

Without StyleDriftScorecard.com, your Allocations are Wrong

If you go through the exercise of selecting funds for a client's portfolio without checking the "Style Drift" of the underlying funds, you are committing malpractice because you are pursuing more risk as well as a different allocation than is stated in the clients "Investment Policy" statement.

Note also that "Holdings Based" analysis will not protect you because the holdings on the reporting dates are most likely not the actual holdings of the fund for the most of the quarter. The manager's are trading and changing their holdings to pursue higher returns.

Great for: Financial Advisors, Brokers, Certified Financial planners, Plan Sponsors, 401(k) Fiduciaries, Registered Representatives, Registered Reps, IARs, Trusts, and anyone picking investments, developing asset allocations and implementing portfolios with mutual funds.

Software Specs: Internet-based software runs on any computer that can operate a Web Browser including Windows, Macintosh, UNIX, and Linux. No software installation is required. Runs in your web browser.


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Main Benefits:

Avoid Lawsuits

Reduce Portfolio Risk

Improve Performance

It's Easy-to-Use

Save Time

Lower Cost

No Install Required

No Downloads Needed

Data Updated Monthly

Web-Based Software