CFRA Notes Importance of Historical Records and Forward-Looking Analysis in Fund Research
New York, October 30, 2017: CFRA, one of the world’s largest providers of independent research, is today noting how its mutual fund research methodology has helped financial advisors with their due diligence efforts since 2009.
“Mutual fund performance success can be fleeting, yet far too many advisors and asset managers overweight the past without an eye to the future in their fund research efforts,” said Todd Rosenbluth, Director of ETF & Mutual Fund Research with CFRA, who spearheaded the development of the CFRA approach to fund research when he was with S&P Global.
Rosenbluth went on to explain how CFRA uses a fund’s one- and three-year total return ranking, relative to its peers, as well as its standard deviation, as a starting point in its research. From there, they look to incorporate manager tenure, a key risk consideration, as well as numerous data points around cost factors. Finally, CFRA leverages the well established and highly regarded equity research team at CFRA, taking a fundamental view of the securities within a fund to better understand the factors that may drive future returns. It is only after all of these aspects have been researched and reviewed that a fund receives a ranking from CFRA.
“It’s not the past, it’s what’s inside a portfolio that will drive future returns,” continued Rosenbluth. “Being able to leverage the industry-leading research from my CFRA colleagues gives us a powerful tool.”
CFRA currently offers its star ratings on more than 22,000 mutual funds and also provides research and ratings on approximately 2,000 Exchange Traded Funds (ETFs).
“Advisors and investors deserve an alternative when it comes to their fund research needs,” said CFRA CEO Peter de Boer. “The efforts of Todd and his colleagues on the fund research front were clearly very appealing to us and a major reason we acquired both the fund and equity research teams from S&P last year. They are a perfect fit with CFRA’s culture, which is built on a commitment to providing independent, thorough research across asset classes. We welcome advisors and investors to take a closer look at all we have to offer.”
CFRA is hosting a webcast on Wednesday, November 8th at 11am ET that will provide a deeper dive into CFRA’s clear and proven approach to mutual fund and ETF ratings. This event is eligible for continuing education (CE) credits for CFA, CFP and CIMA charterholders. You can register here.
For more information about CFRA, please visit www.cfraresearch.com.
CFRA is one of the world’s largest providers of independent investment research. Through a differentiated methodology blending forensic accounting and fundamental equity research, CFRA empowers sophisticated investment professionals, advisors and risk managers with actionable analysis and proven results.
CFRA’s global research team of 75 analysts critically evaluates industries, funds and companies of interest to help over 2,000 clients, including the world’s leading institutional investors, wealth advisors, corporations, academics and governments, to make sound investment and business decisions.
Founded in 1994, CFRA is privately held with offices in or near New York, London, Hong Kong, Kuala Lumpur, Charlottesville, Denver, and Washington, D.C. In October 2016, CFRA acquired and has since fully integrated the Equity and Fund Research business from S&P Global.
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