Transparency in the world of funds by performance and risk calculation with fundguru.
Facing an underperforming global fund market
The global active fund market amasses to $17 Tn, with over 250’000 funds offered to investors, promising high returns. In reality, many funds have been underperforming – some of them drastically. One reason for the prevalence of bad funds in the market is that investors have almost no possibility to screen a fund on its quality. Additionally, investors often buy funds which just performed well in the past without knowing whether the fund performed well due to skill or luck.
Proof – Academia, Media, and Regulation
Numerous academic research has shown that many of the actively managed fund or hedge fund continuously perform poorly and do not even beat a passive index. Further, there is only a small group of genuinely outstanding funds. So it is difficult to identify and invest in a good quality product. In the past, the information provided by the fund manager often did not show risk and return patterns nor tell enough to make a useful decision. As a result, the EU launched a new regulation where more transparency must be provided to investors (PRIIPs). But we think that is not enough.
fundguru – our solution
With fundguru, we have launched a fund comparison platform that analyzes all actively managed funds globally. We addressed the issues mentioned above by using cutting-edge artificial intelligence and machine learning algorithms, developed over many years by well-known and leading professors. Through our online platform fundguru, we offer simple access to the results to private investors while providing institutional investors a direct solution.
We receive weekly data of over 250’000 funds, which we analyze in a three-stage process. We define first the peer-group of each fund. We then select the benchmark, serving as the comparison of the fund. And in the last step, we perform the calculations and the actual benchmark comparison. As such, we can identify absolute risk, actual and relative performance of every fund globally. The results of the calculation are available on fundguru.ch.
We offer two kinds of solutions – B2C and B2B
Retail Investors – use fundguru.ch and see how good those funds really are. The platform is currently under construction to improve some of the functionalities– link.
Institutional Clients – we offer institutional solutions, by which we calculate the performance and risk of your entire universe, to which we can also suggest on how the funds can be improved.