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CAPS adds Inalytics transaction cost analysis

UK - Institutional investment information firm Russell/Mellon CAPS has signed a distribution deal for transaction cost analysis with Inalytics.

The agreement allows Russell/Mellon CAPS to distribute PlexusGroup’s transaction cost analysis service. Inalytics has an exclusive marketing agreement with Plexus – which is part of J P Morgan Investor Services.

A spokeswoman declined to disclose the financial terms of the deal. The new service is available as an add-on for Mellon CAPS clients and fees would be “in line with” similar analytical services, she said.

“This service adds an extra dimension to the current performance measurement services that Russell/Mellon CAPS supplies to its pension fund clients,” Russell/Mellon CAPS said in a statement.

Mick Brant, chief executive of Russell/Mellon CAPS said: “Pension funds are increasingly looking at new ways to add value to their funds. This approach will help pension funds analyse the transaction costs in line with Myners’ requirements and we will now be able to integrate this with the delivery of our existing performance reports.”

Rick Di Mascio, chief executive of Inalytics, said: “Whilst compliance is important, the real issue is that these transaction costs are large and represent a real loss of value and drag on performance, which our reports will enable clients to identify.

“Clients will be able to track explicit costs such as commissions and implicit costs, such as market impact and timing, all on a quarterly basis.”

Privately-held Inalytics has 36 European clients and Di Mascio says there is “just as much demand from the Continent as the UK” for its products. He expects its client base to eventually be 50:50 UK/Europe.

The new service is available as an add-on to Russell/Mellon CAPS investment analysis. Pensions funds that sign up will be able to receive transaction costs analysis with their next quarterly investment report.


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