Manager Search & Selection


Manager Search & Selection is one of the principal ways we add value to your investment process. We assess investment managers through a number of qualitative and quantitative measures, beginning with a qualitative review based on our investment manager questionnaire and profiling process. This process includes the completion of asset class specific due diligence questionnaires, interviews with key investment management personnel and on-site visits, as appropriate.

Qualitatively, we focus on a number of key ‘Leading Indicators of Performance’ when placing a firm on our approved list. This includes firm-wide factors as well as investment product-specific characteristics such as portfolio managers, philosophy and process. Quantitatively, we evaluate managers based upon performance versus peers, absolute and relative return versus broad market and style specific investment objectives, aggressive/defensive performance orientation relative to a proprietary scoring system, Sharpe based performance style analysis, and security-level holdings review.

Portfolio holdings are processed through our proprietary Fund Diversification Monitor, which evaluates securities by aggressive/defensive, growth/value, market cap, Price-to-Earnings, Price-to-Book, and sector orientation to identify portfolio management style and performance attribution.

Through our ongoing research, over the course of our history, we have developed a suite of proprietary Factor Models. Together, these models more accurately measure market inefficiencies, portfolio risk exposures, and firm-specific risk exposure than traditional models. As a result, they produce accurate expected return calculations for each manager considered. We seek to better explain within which market environment investment managers will be expected to best perform; this is extremely valuable when evaluating manager performance in light of capital market conditions and market leadership (style or market cap size, for example). This process helps us partner with the best investment manager that fits your investment risk and return goals and objectives. In summary, our Factor Models help us monitor investment managers in three ways:

Performance Projections - You can actually project a manager’s relative performance and the overall relative performance of your fund.
Manager Search - Expected return analysis provides better insights for evaluating a prospective manager’s security-selection skills.
Performance Evaluation - Similar techniques enable you to evaluate more precisely a manager’s ability to select securities with the highest expected return.

Upon completion of all qualitative and quantitative due diligence steps, we draft a profile of the investment management strategy for review by the Manager Review Committee (MARC). With over 150 years of combined investment experience, MARC is made up of senior consultants and portfolio managers that serve as the internal due diligence review board.

During investment strategy review meetings, MARC reviews the strategy profile accompanied by performance and holdings analytics to assess any due diligence concerns and opine on the appropriateness of use by clients. After the strategy has been reviewed, ongoing due diligence is maintained with periodic profile updates and continued monitoring of noteworthy, strategy-related news.

We build and maintain ongoing relationships with client related investment managers, opening clear lines of communication to convey any developments that would impact our opinion of an investment management firm or specific investment strategy. As part of our ongoing due diligence, we perform on-site due diligence of managers on an ongoing basis.