|
Transaction
Cost Measurement (TCM) for Investors
Every
transaction has a cost. For investors, that cost,
whether visible or invisible has an effect on bottom
line return.
Where
visible costs negatively influence an investor’s
performance to approximately 6 basis points (bps),
invisible costs often exceed 100 bps.
To
put this in context:
6
bps on turnover of 50,000,000 = 30,000
100 bps on Turnover of 50,000,000 = 500,000
Our
TradeShare TCM (Transaction Costs Measurement)
service explores both costs but most importantly
analyses invisible charges such as spreads, market
impact, opportunity costs, natural price
appreciation and timing. Users will be able to
manage their transaction costs through pinpoint
assessment as to where, how and why costs are
incurred.
We
collect complete, time-stamped data across the
entire trading cycle, directly from the managers.
This allows for superior calculations and accurate
reports, which in turn leads to better discussion
with the managers and greatly improves the potential
for a reduction in costs.
Through
comprehensive collaboration with representatives
from both sides of the investment equation,
TradeShare has:
- Pioneered fundamental
improvements in data collection, leading to more
precise calculations, rather than the
ranges and estimates that typify much of the
currently available analytics.
-
Addressed
the complexity of so many current analytical
tools through clear, concise and relevant
reporting.
- Provided independent
reporting to a larger proportion of the market
through realistic and cost-effective pricing.
Our
clients can produce high-level reports instantly for
trustees and committees, or dig deep into the data
for a greater understanding of a specific
transaction, thus being in the position to prepare
thoroughly for effective in-depth discussions with
asset managers.
Whether
taken as a web tool or reporting service, TradeShare
TCM will help investors to identify if and where
there is alpha to be gained through better
management of costs.
Typically,
clients of the TCM service are large institutional
investors who are invested in equities and aspire to
maximise returns on their investments.
Download
PDF Brochure
|
