Local authorities invest in manager skill measurement

Inalytics, a specialist in analysing asset manager investment skill, has been appointed to work for four local authority pension funds, including Cumbria and Warwickshire. The four funds will use Inalytics to improve their understanding of fund manager skill levels.

Warwickshire County Council Pension Fund’s Matthew Dawson said it had selected Inalytics due to “the insight it could give into what is really behind a manager’s performance. Whilst our active equity managers are both performing very well, demonstrating manager skill beyond the relative benchmark will provide clear evidence to the investment sub-committee.”

Inalytics analyses every decision to buy or sell a security that a portfolio manager makes to build up a picture of their skill in selecting the right stocks and knowing when to sell them. William Nicholson of Inalytics said: “We look forward to helping the UK’s local authorities with their due diligence process. We are confident that we can provide an extra level of scrutiny for pension funds in their appointment and retention of investment managers.”