There are thousands of qualified investment
managers. The trick is to find good ones that
best meet our clients needs. We have conducted
searches in virtually all asset types: equities,
group annuities, fixed income, private equity,
market-neutral strategies, enhanced index GICs,
equity real estate and mortgages. We do not
have a preferred manager list and no firm pays
to be included in our searches.
No matter how much analysis one
does, in the end, making this selection is a matter
of judgment and experience. Given that, we do extensive
quantitative and qualitative analysis. The extremely
low turnover of managers we have selected testifies
to the soundness of our judgment. Our consultants
meet with hundreds of investment managers each year
to keep abreast of developments at the firms and
new products and services, which allow us to see
a wide variety of firms, styles of management and
levels of servicing. This practice helps us to separate
those firms who are capable to successfully manage
money for our clients.
Based on the clients investment policy and asset allocation, we identify types
of manager (e.g., large-cap value, smallcap growth) that are appropriate for
our client, e.g., those which have experience with taxable portfolios. We review
our proposed search criteria, RFPs and managers' responses with the client. We
then develop a preliminary list for further analysis.
Our consultants are actively involved in every search; developing written requests
for proposals, interviewing candidates and references, checking data and doing
statistical analysis. Among the factors we consider are whether strategies meet
the client needs, evidence of effective risk controls, strong internal operations
and compliance; and stable management.
We perform all analysis inhouse, and conduct facetoface meetings/on-site visits
with all finalists. We keep the client fully informed of our progress. Once the
manager is selected, we help negotiate the contract and fee schedule, set up
the account, handle funds transfers and define reporting procedures.