Who is providing Fund Manager Selection and Due Diligence?
The process of identifying which funds to include as part of a plan’s investment menu involves multiple quantitative screens combined with qualitative judgments which allow us to narrow the field from thousands of publicly traded funds to the specific funds we ultimately recommend.
Our quantitative analysis of individual fund performance begins with measuring total return, risk-adjusted return and peer group ranking over 1, 3, 5, and 10-year time frames. Statistical measures include, but are not limited to, alpha, beta, Sharpe and standard deviation. Investment options are also reviewed for style drift, manager tenure, fund family history and fee structure.
Additionally, we review the overall investment menu from a broad market perspective to ensure reasonable representation across equity and fixed income asset classes as well as a broad range of investment objectives. Duplication among security holdings, styles, and strategies among money managers and mutual funds is also considered.
This process is repeated on a regular basis based on the criteria in the investment policy statement to ensure your plan investment menu remains competitive.