Does your mutual fund company provide its investors with adequate asset allocation tools? If not, be ready to leave the analysts at Corporate Insight
Senior analyst Chris McNeil
, author of Corporate Insight's Mutual Fund Monitor
report, described the firm's perspective on the issue.
"We believe the overall value of an asset allocation tool is directly correlated with their level of sophistication," McNeil said Monday in a release
. "During our research, we came across a variety of different tools that range from complex to extremely limited. Among the most useful tools were those that allow users to create comparisons between current and target portfolios."
McNeil explained Corporate Insight's disappointment.
"We were surprised to find that only nine of the eighteen mutual fund firms we track provide asset allocation tools to their investors and advisors,",McNeil stated, "and of those nine, only four firms put all the pieces together to provide valuable resources for both clients and prospective investors alike."
The New York City-based firm's report looked at asset allocation tools at eighteen fund companies, examining questionnaires, use of actual account data, detail, ease of use, understandability, use of charts and graphs, and provision of specific investment suggestions. The report concluded with recommendations, along with more detailed descriptions of each of the firms' offerings.
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