Convergence, a provider of advisory services to the alternative asset manager industry, has rolled out a new fund expense practices analyzer service.
The service will provide advisors and investors’ data on common and uncommon expense disclosures and their use by advisors and peers.
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The company said that the expense disclosure database will be updated with every new brochure and customers will receive updates annually, or more frequently based on the service level purchased.
The product has been launched based on expense disclosures collected from over 10,000 registered investment advisors that are categorized by manager type, primary investment strategy and size.
George Evans, co-managing partner of Convergence, said: "Our data confirms CALPERS view on expenses and shows large differences between the types of expenses disclosed by Advisors of similar sizes and types. For example, while 92 percent of all advisors disclose Fund Accounting and Administration expenses, only 3 percent disclose Risk Management.
"At the Strategy level, Multi-Strategy advisors disclose 46 unique expense categories, the most of any of the 30 investment strategies tracked by Convergence, resulting in the greatest differential between the median and maximum expense category count within a strategy."
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By GlobalDataJohn Phinney, co-managing partner at Convergence, said: "Investors using the tool should be able to engage their managers in a more complete conversation about the management fees they pay and the expenses they may expect to incur, relative to what other advisors may be charging."
