Research methodology

How GFA finds and evaluates specialist managers
The value of intuition
GFA Fund Ratings-pointers to outperformance
GFAstats-detailed, accurate and comprehensive fund data

To gain an accurate picture of an offshore fund, it is not enough to look solely at performance figures. It is vital to look beyond the numbers and gain real insight into the risks, personalities and strategies that yield clues to future outperformance.

GFA's successful manager selection relies our uniquely powerful combination of both quantitative and qualitative analysis. We provide detailed interpretation of the consistency of risk-adjusted performance. And qualitative assessment of the investment methodology, investment adviser and risk controls.

How GFA finds and evaluates specialist managers

GFA research proves that identifying and investing with the best specialist managers yields consistently better results that investing with generalist managers. Our task is to find and evaluate the specialists.

To do this, we divide managers into eleven categories: arbitrage strategies, Japan, Asia ex-Japan, multi-manager, European equity, emerging markets, global balanced, trading (CTAs), North America equity, sector funds, and global equity.

We visit each manager once a year to develop a balance sheet-style snapshot of their business. Our analysts look for the signs of consistency indicating that they might outperform their peers, irrespective of how a fund may perform relative to other assets.

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The value of intuition

Quantitative analysis is an important starting point for distilling the manager universe into a shortlist of potential investment candidates. But it is not enough on its own.

So while we take a systematic approach, we place greatest emphasis on the intuitive skills of our analysts to confirm the consistency of style or uncover weaknesses in a manager's methodology or organisation.

It is this level and quality of analysis that determines the difference between outperformance or underperformance in the long term

GFA Fund Ratings-pointers to outperformance

All GFA shortlisted funds are, by definition, top performers. But GFA does not endorse them all. First, we apply stringent tests for consistency to arrive at a rating. This indicates the likelihood that the fund will continue to rank amongst the top performers.

very highly endorsed
highly endorsed
GFA endorsed
Unrated

Investors should note that GFA ratings are only valid at the time that the research reports are issued. Like a balance sheet audit a GFA report is a one time snapshot assessment of a business which will be subject to change from one day to the next. GFA reports reflect the views of Global Fund Analysis and do not purport to be investment recommendations.

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GFAstats-detailed, accurate and comprehensive fund data

With greater investor penetration than any other online data source, GFAstats, our proprietary database of fund data, is fast becoming the primary source of data for investors in offshore funds worldwide.

Investors can search the database using sophisticated selection criteria, providing them with a powerful tool for finding the most appropriate fund to meet their investment parameters. Investors already have access to free data on some 2000 funds.

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