Allocators

Allocators

Industry Challenges

• Managers are difficult to find and screening is inefficient
  Current allocation process often lacks the ability to validate a manager’s risk, return and portfolio fit utilizing holdings based analytics all in one place
• It’s a laborious monitoring (e.g. monitoring the manager, monitoring the risk, monitoring the portfolio, etc.) process for allocators and achieving the perfect allocation of existing and new managers is sub-optimal
  Allocators are often resource constrained
• Investment Consultants can take a one size fits all approach
  As a result, emerging and smaller managers are often overlooked
• Today’s manager analysis is reliant on a point in time, done on an ad hoc basis
  On-going risk management is not widespread
• Managed Accounts have underperformed LPs because managed account platforms are not putting in their best ideas despite being “daily*" and fully transparent
  Allocators are moving away from managed accounts and showing a renewed preference for an LP structure (limited v unlimited loss) but are torn; who wants real-time transparent monitoring of an underperforming portfolio?

Solution: THE FCN PLATFORM

The platform leverages MSCI’s unique asset set (data and analytics) to provide allocators a place to screen and understand where the Fund fits in their portfolio. As a result we create a unique channel of capital allocation for Funds.