The Perfect Investor
This site has been published by Warnborough, which is authorised and regulated by the Financial Services Authority, the regulatory authority in the UK. We only serve institutional investors and experienced individuals and we do not operate retail funds.
On this site we discuss a proprietary research tool we have developed called The Perfect Investor, a quantitative method for assessing the theoretic potential of any index tracker or exchange traded fund, anywhere in the world. It provides a helpful starting point for investors who are reconsidering some of the basic aspects of investing, from managing individual securities right up to the way they make asset allocation decisions. Once you become familiar with some of the simple arithmetic techniques at the heart of this research tool, it becomes much easier to follow our new “active passive” investment style and our method of “dynamic” asset allocation.
More details on this research tool can be found on the page headed About this Site. Various tables and graphs illustrating our research findings can be found using the links on the left of this page. These show examples of ten popular exchange traded funds we have analysed using The Perfect Investor which we call our ten reference ETFs. We have also analysed three Islamic ETFs using the same process. Other ETFs maybe added in due course.
In general, we suggest that by keeping up to date on which markets currently show the most potential, investors can more easily select investment styles and strategies that can harness market swings. One way of doing this is to use our "dynamic" investment method called The Algorithmic Investor.
This site does not make any investment recommendations. There is no fund directly linked to The Perfect Investor which is a theoretical tool only. We hope the approach we have outlined and the analysis we have set out are of more enduring value than the illustrative data.
The research material presented here was last updated in October 2011 and may be updated from time to time without notice.
Q3 2011 Highlight
From the end of 2008 until the end of 2010 the four emerging market ETFs we follow showed more potential than the developed markets and the world market. This ranking changed at the end of Q1 2011 with a European index climbing to number four on leader board.
2011 has been a year of continued bunching and jostling. At the end of Q3 2011 eight out of ten ETFs changed position. LTAM (Latin America) lost its top place to IEUT (FTSEurofirst 100) by the narrowest of margins. Two European EFTs remain in the top four places.
Summed Global Potential continues to fall and summed Global Perfect Trades continues to rise, reflecting lacklustre conditions in all the major markets.