AS FUND ASSETS FLUCTUATE IN TODAY’S VOLATILE STOCK MARKET, how can you be certain your manager is providing maximum value for your investments while maintaining established guidelines? The answer, of course, is fundamental. Conduct a reliable, timely measurement and evaluation of your portfolio manager’s performance.
DeMarche’s quarterly manager performance analysis includes three reports: Capital Market Review, Performance Appraisal Report and Fund Diversification Monitor.
Together, these serve as the basis of all reviews and recommendations regarding your Fund or fund managers.
CAPITAL MARKET REVIEW
The Capital Market Review addresses general issues such as investment industry trends and capital market conditions. This report defines the economic and market environment within which your managers operated for the previous quarter and helps to put fund and manager performance in perspective.
PERFORMANCE APPRAISAL REPORT
With this report DeMarche introduced performance attribution to the manager performance industry in 1974. The Performance Appraisal Report (PAR) is an executive summary that provides a total fund summary, asset class summary and individual manager summary with appropriate benchmark and peer universe comparisons. To ensure quality and accurate fund and manager returns each quarter, our portfolio accounting team reconciles custodial transaction statements with asset statements and manager-provided returns. Confidence in both the determination of the data as well as the comparisons to peers and benchmarks are crucial to effective decisions.
FUND DIVERSIFICATION MONITOR
The Fund Diversification Monitor (FDM) contains a comprehensive, factor-based, attribution analysis of each manager. DeMarche was the first consultant to use attribution analysis. Our FDM analyzes your managers’ abilities to add value by four skill sets: Market Timing, Sector Diversification, Security Concentration and Security Selection. The equity FDM utilizes one of DeMarche’s factor models to attribute performance using more than 20 economic factors. We combine factors to analyze the economic orientation, growth/value and aggressive/defensive characteristics and the skill sets your managers used to add value to your fund.