Abel Noser Solutions, along with Zeno AN Solutions, the company’s asset owner focused division, today announced the launch of a fund capacity analysis product that strategically calculates the effects of fund growth on alpha and overall performance. Investments
“Our new Liquidity Threshold tool helps ascertain the degree to which growth in a fund’s AUM may sap performance due to increasing trading costs and a changing liquidity profile,” said Steve Glass, Head of Zeno AN Solutions and Co-CEO of parent company Abel Noser Holdings. “Knowing a manager’s liquidity threshold is a critical piece of information when assessing their ability to sustain superior performance into the future and minimizes the risk of asset owners ‘chasing performance.'”
The capacity analysis offering is designed to be particularly relevant when conducting due diligence in the context of manager changes, plan re-balancing, fund closures, launches or mergers. To supplement these insights, the analysis also provides a concise summary of a current or prospective manager’s trading efficiency, peer ranking, and the estimated transition costs associated with funding or liquidating a portfolio. Fintech News
“We expect a lot of interest in this offering not just from asset owners and consultants, but also from the wider investment management community,” remarked Peter Weiler, Co-CEO of Abel Noser Holdings. “The tool allows managers to better understand the implications of adding additional AUM, conduct ‘what if’ stress test scenarios on proposed investment strategies, and better comply with regulatory protocols.”
“Our Liquidity Threshold tool is part of a new slate of next-gen TCA and compliance measurement products,” explained Ted Morgan, Abel Noser’s COO and head of technology development. “It comes on the heels of recent company launches including an SEC 606 sell-side analytics offering, an innovative fixed income TCA upgrade, and new compliance and trade surveillance products relating to global regulatory and best execution measurements, with additional products premiering in the near future.”
