Each month, we analyze our growing Mutual Fund Universe to identify which mutual funds are delivering the best risk adjusted returns to investors. We look not only at absolute mutual fund returns, but also the returns relative to a benchmark.
Another very important component of our analytical process is the monthly mutual fund volatility, or simply, the risk. We want to identify those funds which are not only delivering strong performance, but are doing so with less monthly risk.
Once this information is collected and verified, we then rank our Mutual Fund Universe. The funds that exhibit the best risk adjusted returns will be ranked the highest. We then perform some final qualitative analysis to determine our final Mutual Fund Ratings, which are available to our clients. If you are interested in seeing a sample of our current top ranked funds, please click here.
We have set up the Paterson & Associates Mutual Fund Ratings to be very simple and easy to understand. We have broken our universe into 5 different categories; Strong Buy, Buy, Hold, Underperform, and N/A.
Strong performing, low volatility funds that have a history of consistently outperforming its benchmark will rank highly, while those which have consistently underperformed the benchmark will rank as an Underperform. Any fund which is ranked as N/A has shown positive performance relative to its benchmark, however, it will have less than 36 months of data. We will not issue a positive ranking on any fund with less than 36 months of data.
With this focus on the risk and volatility, the Paterson & Associates Mutual Fund Ratings will help you to identify the funds which have not only performed well on an absolute basis, but have also provided strong risk adjusted performance. This can save your valuable time since we have helped you to reduce the number of funds you will need to consider in constructing your client portfolios.
While past performance is no guarantee of future performance, we believe that the funds which have delivered steady, consistent performance in the past, will have a greater probability of continuing to do so in the future. This analysis, combined with our continued monitoring of the economy, markets and mutual fund industry, will insure that you are kept well informed so you are better able to service your clients.
To find out more about the Paterson & Associates Mutual Fund Ratings, please contact us .
Portfolio Optimization
Using a process based on the Nobel Prize winning theory first developed by Dr. Harry Markowitz, Paterson & Associates can show you how to improve the risk return characteristics of your client's investment portfolios.
Paterson & Associates will thoroughly analyze your current client or prospect's portfolio. With this information, we will assess the portfolio, showing you exactly how much risk the portfolio is assuming for the expected level of return. With this as our benchmark, we will show you how by making a few changes to the allocations of the funds, you can improve the risk return characteristics of the portfolio.
Paterson & Associates can show you how you can move your portfolios from the Red Efficient Frontier to the Blue Efficient Frontier as in the chart below. To see a PDF version of a sample Portfolio Optimization Report click on the graph below, or simply click here .
To do this analysis on your own is a very time consuming and often complicated
process. By having us complete this research and analysis for you, it
frees up your time, allowing you more time to prospect for new business,
or to maintain existing client relationships.
Product Due Diligence
Paterson & Associates is fast becoming one of the industry's key resources in this field and currently work very closely with a major MFDA dealership in assisting them in building and maintaning their product due diligence process. Over the coming months, we will begin to offer this service on a select basis to smaller dealerships, industry groups, and individual financial advisors on a case by case basis.**
Our process is very thorough, taking into account not only investment risks, but a careful examination of the operating procedures, risk controls and other risks that may be associated with the particular product. We can also work with the individual advisor to help you create your own customized due diligence process.
No due diligence process will protect you and your clients from every bad investment. However, by having a carefully constructed, well documented process in place, the likelihood of getting caught up in such a situation is greatly reduced.
For more details on our due diligence service, please contact us.
Customized Research Solutions
Whether you are preparing for a client meeting, an industry
trade show, or to satisfy your own curiosity, Paterson & Associates
can do the research for you. We have access to a wide variety
of financial information from numerous sources, combined with many years
of industry experience, allowing us to provide you with the customized
research solution that best meets your business needs.
** - Assuming no potential conflict of interest situation between current clients and existing clients. Each situation will be evaluated on a case by case basis as we take our client relationships, client practices and privacy very seriously.
No Advice
Our services are intended to be for informational purposes only. The information provided on the Paterson & Associates web
site is not intended to constitute legal, accounting, financial or tax
advice. Many factors unknown to us may affect the applicability of any
statement or comment that we make on our web site to your particular circumstances.
You should consult with your professional advisers before acting on any
information that we have provided.
