Software capable of analysing regionally invested pan-European securities portfolios at the level of style orientation has been developed by UK based Style Investment Research Associates (SIRA).
Style analysis looks at the criteria of book price, dividends, earnings, cash flow yield and sales to price factors, as the essential attributes to a portfolio's performance.
As these factors can apply differently depending on the market, with US and UK securities value considered on book to price factors and continental Europe focusing on cash flow and earnings, SIRA's system examines not only whether a security's performance is growth or value and how, but also if this is due to individual market factors.
This examination can also be broken down to the individual sector level, as well being used to consider risk elements. All analysis can be conducted relative to the structure of the total relevant market or relative to industry standard or customized investment benchmarks.
Robert Schwob of SIRA says: Alongside a monthly survey of style themes through statistics and related forecasting of different markets that we do, this individual 'x-raying' of portfolios we believe is the first software capable of style analysis across regional markets, such as Europe ex UK"."