PMA’s proprietary quantitative assessment tool was developed by Dr. Marshall E. Blume to objectively identify the source of a fund manager’s investment returns and to provide a basis on which to compare managers and evaluate historic performance.
This tool screens the last five years of the manager’s monthly returns against four factors – the general market, equities by market capitalization, equities by growth or value orientation, and sensitivity to interest rates.
This allows PMA to make sophisticated comparisons between managers that are unbiased by market conditions or particular fund outcomes. PMA’s quantitative process identifies managers who outperform their peers while remaining consistent to their style, not simply managers who have a good result relative to the overall market.
The four-factor analysis determines the true investment style of each manager and shows how closely and consistently managers adhere to their style. By ranking and comparing managers within each major market sector, we can determine who has historically achieved the best returns in that sector at the lowest risk and expense.