Abel Noser’s Liquidity Threshold fund capacity analysis tool helps ascertain the degree to which growth in a manager’s AUM may sap performance due to increasing trading costs and a changing liquidity profile.
The analysis also provides a concise summary of a prospective managers’ current trading efficiency and peer ranking.
With the ability to project a fund’s rate- of-return as AUM and portfolio turnover change, the quantitative capacity analysis is useful for asset owners, fund complexes, investment managers, investment consultants, and distribution partners.
Liquidity Threshold Dashboard Report Example
Features and Uses
Asset Owners - Use for oversight review when searching for or replacing fund managers. Can also determine fund capacity thresholds for current managers or provide “watch list” analysis.
Portfolio Transitions - Useful for due diligence analysis when considering manager changes, plan re-balancing, fund closures, launches or mergers.
Investment Managers - Enables managers to better understand the implications of adding additional AUM, conduct “what if” stress test scenarios on proposed investment strategies and better comply with regulatory protocols
Investment Consultants - Can assist in analysis on recommended products for growth as both a best practice offering and unique differentiator.
A Consultative Approach
Our consultants work as an extension of your staff, helping you to understand and mitigate the ever-changing complexities inherent in the securities trading industry. With decades of experience in trade cost analysis, fiduciary monitoring and manager evaluation, Zeno AN Solutions can provide the in-depth knowledge and leading-edge technology necessary to meet your fiduciary and oversight requirements.
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