Bringing more rigorous defined benefit fund-type performance analysis to users of mutual funds, Callan Associates Inc., San Francisco, introduced 24 mutual fund style groups, which it will offer as performance benchmarks in its new Mutual Fund Master Service.
The new Callan style groups provide benchmarks for domestic equity and fixed-income funds as well as international mutual funds in both asset classes.
Ronald D. Peyton, president, said in a statement the new groups will ensure "our clients of the first real 'apples-to-apples' performance comparison for their mutual funds," which are widely used in 401(k) plans.
The 24 style groups, based on a universe of 4,800 mutual funds, consist of: aggressive growth, contrarian, core, value, yield growth, midcapitalization, small-cap growth and small-cap value groups for domestic equities; broad, core defensive, extended maturity, high yield, intermediate and mortgage-backed groups for domestic fixed income; core, emerging markets, Europe, global, non-U.S. and Pacific groups for international equities; and non-U.S. and global groups for international fixed income.
Despite the growth in mutual funds, the consulting firm noted in a statement that users of mutual funds "have lacked the sophisticated performance measurement tools and high-level guidance available to the fiduciaries of large retirement plans."
In addition to quarterly performance information, Callan can furnish clients comparisons of fee structure and expenses, among other criteria, and customized benchmarking of portfolio manager compensation from its new style groups and mutual fund universe.
Besides the new benchmarks, Callan's Mutual Fund Master Services provides a full-range of consulting services.