PureGroup develops fund-screening tool for advisers

PureGroup develops fund-screening tool for advisers

Fledgling fund research company PureGroup has developed a screening tool to help advisers compare open-ended funds alongside closed-ended and exchange-traded vehicles.

The company, founded 18 months ago, said its Screener tool would be free to use for advisers and would help them meet regulatory requirements that stipulate a clear advice process. The instrument covers more than 4,000 funds.

“Fund comparability has consistently been a challenge for advisers when looking to explain clearly why certain products may or may not be suitable for particular clients,” founder Patrick Murphy said.

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The Screener will also allow advisers to download the group’s Pure Overview Documents.

The documents have been produced for thousands of active and passive funds and seek to explain how a product will act in different macroeconomic environments, such as rising inflation, as opposed to just analysing past-performance metrics.

“Providing an adviser with an evidence point to demonstrate how a fund is likely to react in changing economic conditions is useful when considering ongoing investment suitability,” Mr Murphy said.

“Past-performance statistics can only do so much. The key now is to use other tools and information to build a fair, unrestricted and unbiased picture of a fund on a forward-looking view that supports the regulator’s requirements.”

The Screener tool is available to advisers via PureGroup’s website.