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Fund selectors brush off Kid performance figures

Fund selectors will not look at Priips’ key information documents (Kid) as they prefer qualitative measures over quantitative data when making investment decisions.

Fund selectors brush off Kid performance figures


Jassmyn Goh

Madrid-based Bankia head of funds of funds and absolute return, Alvaro Martin Sauto said when selecting third party managers his team did not focus on past performance or future expectations – data sets that Priips now require funds to provide.

“We focus on the investment process, how the team is built, and how long they have been together during times of good performance. All of the qualitative measures for us are more important than quantitative ones,” he told Expert Investor.

Similarly, Finnish senior portfolio manager for Evli Bank, Tanja Wennonen-Kärnä said she would not be considering the figures published in funds’ Kid as it was not part of their fund selection process.

“I’ve always managed to get all the data that is needed to make our fund selection decisions. Professional fund selectors probably won’t be using them but perhaps private individual investors might,” Wennonen-Kärnä said.

She noted that there was no one set of numbers that would help fund selectors pick funds as useful quantitative data depended on what fund and share class they were looking at.

Nordea Asset Management’s head of balanced and alternative products, Claes Roepstorff, also said he would not use the Kid figures.

“We do a much more vigorous and throughout assessment of the funds. We look at performance, investment process, the people involved, and governance around it,” Roepstorff said.

“These are areas that you would not be able to find that in the Kid so we will not be engaging with the Kid at all.”