Today active managers are losing assets to passive investment products. These negative flows are primarily caused by the inability, on average, of active managers to outperform their stated benchmarks on an after-fee basis. The management companies have made huge investments in staff, infrastructure and data analytics models to build their portfolio stock selection processes and require higher fees to cover these expenses. Investors are paying extra fees for active management, but are receiving lower net returns. 

 

Active investment management is in need of transformative change...

 

 ENSEMBLE ACTIVE MANAGMENT IS THE ANSWER

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Ensemble Active Management (EAM) uses the proven best practices of predictive analytics to create a "best ideas" portfolio from leading experts in order to generate alpha.

 

Through a comprehensive licensing agreement with our technology partner, Turing Technology Associates, Pegassets delivers EAM-based solutions to asset management firms. We have developed a suite of high-performing EAM model portfolios dating back to 2019, and also act as an introductory agent for Turing.  Pegassets can either license access to one of our existing EAM model portfolios or enable firms to develop world class EAM portfolios to their own design specifications, including specialized solutions such as ESG.

 

While utilizing ensemble methods is relatively new to the investment management industry, it has been used successfully in multiple industries for over 40 years. Financial Technology Intellectual Property is rapidly evolving and the financial markets are prime for this new EAM capability that is well poised to energize and even transform active management.

 

CALL US TO SCHEDULE AN EAM DEMO

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