Summit Investors by EarlyStates



Q&A with Summit Investor Services
What is Summit Investor Services?
We are an independent company providing global institutional investors with analytical and compliance information
services. We work for our clients with the aim of improving their investment returns through better informed decision
making based on a broader and deeper analytical process. Our company is unique because we operate from a position
of complete neutrality to deliver a flexible reporting framework. Our value add is in bring extensive industry knowledge
and cutting edge technology to work in combination with our clients expertise.

What services do you provide?
We scrutinise trading activity in order to provide a comprehensive set of analytics and compliance reports.Through our
services investors are able to gain a deeper understanding of their fund manager trading activity, are better placed to
access the value they receive from their fund managers and are better able to select future fund managers.
Uniquely we integrate traditional reports with our new reporting frameworks which together are designed to bring
more clarity and significance to the fund manager monitoring and assessment process.

What is your process?
On behalf of our clients, we work with their appointed fund managers to collect trade data.We do this daily. Information
is then loaded into a central database where it is checked for accuracy. The cleansed data is then used to produce
numerous calculations which form the basis of our analysis. Reports are compiled and tailored in accordance with the
client’s needs before being sent to an email address or mailbox within our online system. Additionally, our clients have
access to the same tools so that they can run attribution and ad hoc reporting.

Can you explain more about the tailored service?
Summit partners with its clients. We bring industry knowledge and a great deal of technical skill to the table. However,
we see our clients as the expert because they know their needs best. Summit is able to build and customise a reporting
framework to match these needs.We put a great deal of emphasis on learning the client’s investment goals and strategies
so that we can change variables such as what gets reported, who receives the reports, how often and what the report
looks like i.e. content, layout , colours, logos, etc.

What areas do you report on?
Our company has specific focus in two areas: analytics and compliance.
The analytical coverage includes performance, risk, transaction cost, buy and hold comparisons, foreign exchange rate
analysis, attribution and fund manager delta.
The compliance service includes continuous monitoring for breaches in style, tactical allocation, strategic allocation,
currency, market sector, credit ratings, and stock restrictions including environmental, social and governance (ESG)
issues. This facility is accompanied by a notification service that is executed in accordance with client protocols.

What separates Summit from other suppliers?
Summit is builds on what currently works in the industry and takes it to the next level.We provide a comprehensive and
extensive range of services that no that no other one supplier matches. While we are very unique, we have sought to
ensure that the procedures or processes we use to deliver our services are user friendly. To that end, we have built the
service around five key delivery principles which differentiate us from other suppliers on the market:
1. Integration – the numerous reports we produce work together to be more powerful and meaningful
2. Simplification – remove complexity and the need for the investor to be process driven
3. Flexibility – the client is the expert in knowing what they what
4. Independence – work with all fund managers and consultants free of conflict of interest
5. Practical – our services must empower investors to have more meaningful conversations with their fund managers
    and consultants

We are a very economical solution when compared to stand alone performance measurement services.

How is the service delivered?
We can automatically schedule and push reports to an email account or online mailbox. All reports are stored online
and made available in various formats such as Word, Excel, PDF etc. Online tools such as portfolio trackers, dashboards,
ad-hoc reporting and attribution make all information accessible down to the individual trade level.

                       Summit Investor ServicesLtd, Knyvett House, The Causeway, Staines, Middlesex. TW18 3BA
     T +44 (0) 1784 469300 F +44 (0) 1784 898360 E W Company Reg No. 656 6169
Is the service aimed at large or small Investors?
The service is suitable for a wide range of investors because we tailor our involvement to match the needs of the
investor. Summit is a company that essentially combines the delivery from a technology or software company with that
of a traditional reporting bureau. Predominantly we use our software to provide a reporting service and then make the
software available to clients so they can perform their own attribution or run ad hoc reports as necessary. However,
for larger and more complex investors i.e. > £1 billion, they have the option of working with us as a software company,
providing tools and support whilst they take responsibility for producing their own reports. In both cases there is a great
deal of automation in what we do. So, whether the investor is large or small, Summit will help them create an efficient
and effective reporting process.

Why choose performance measurement services from Summit?
Firstly, we have a remit to customise reports to our clients’ specifications.This goes down to when and how calculations
are performed, timing of delivery, speed of delivery, colours, logos, report layout etc. Secondly, we operate from a
stance that every day is month end. Our ability to automate daily feeds with the fund managers allows us to provide
next day reporting, thus greatly decreasing turnaround times. We do not need to wait 10 days after month end for the
accounting department to finish their work. Thirdly, we are a completely independent and neutral supplier. Finally, and
most importantly, performance reporting is only our starting point. Information from performance is not only used to
calculate risk reports but also FM∆ reports (described below). Integrating these reports makes the whole analytical
process much more meaningful.

What is fund manager delta (FM∆)?
In short, the FM∆ report will calculate the amount of delta (change / value / skill) your fund manager is bringing to
your portfolio. Building on the industry practice of measuring performance against a benchmark, we now look at a net
performance (returns less results from a full transaction costs analysis) and compare it against a buy and hold analysis.
FM∆ therefore gives the client a more meaningful measurement than deviation from benchmark due to it being specific
to the client’s portfolio and because it looks at many more variables that act as a drag on performance.

Additionaly, the FM∆ analysis is a measurement of value not return. We therefore give the client a single numeric
measurement that they can then use to compare with any other investor regardless of portfolio construction or trading

What do the consultants think of Summit?
Parallel to the site visits we have had with pension schemes across UK, Europe and North America, we have also been
speaking with the consulting community. In fact, much of our early thought evolution and system development was
based on input received from the consultants. Of particular significance is the interest shown by smaller firms who see
our willingness to share information though online web tools as a potential platform from which they can expand their
services.We draw a very firm line in the sand that separates our work from that of a consultant. Summit has no interest
in moving into that market.This, in combination with our neutrality, allows us to work independently within the tri-party
relationship between investor, fund manager and consultant.

Is Summit being affecting by current market conditions?
Perversely it may be helping us as investors tend not to question fund manager value when the markets are climbing.
In the current market however focus is on protection, retention and making the most of what you have, which is what
Summit is about. Where our service makes a lot of sense in a normal market, we make even more sense in the current
environment. Also, the fact remains that development budgets at most major banks have been crippled by what is
happening. So whilst the industry calls for improvements to be made in accuracy, flexibility and timeliness, it is safe to say
that the answer to this need will not be coming from this sector in the short to medium-term.

Is Summit a replacement for traditional reporting?
We cover all the traditional reports but go much wider and deeper than the current industry standard i.e. TCA, FX
analysis, full compliance monitoring and buy & hold analysis. Crucially however, we deliver all this but with added
flexibility and independence for roughly the same level of spend as traditional performance analysis.

More information about Summit Investor Services is available at

                       Summit Investor ServicesLtd, Knyvett House, The Causeway, Staines, Middlesex. TW18 3BA
     T +44 (0) 1784 469300 F +44 (0) 1784 898360 E W Company Reg No. 656 6169

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