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Our manager selection process is based on the concept of risk control and constitutes three different phases:

1. Quantitative Screening

Selection begins with scanning of performance data. We have an extensive database containing performance and other data covering more than 10,000 unit trusts or funds.

2. Extended Quantitative Analysis

The performance characteristics of each fund are investigated in depth. Factors such as correlation, alpha, beta, draw down, performance in Bull/Bear markets are reviewed. This work provides further insight into the performance drivers of the fund manager, including consistency and performance in difficult markets.

3. Qualitative Analysis

Here we examine the following:

  • Length of tenure of fund manager. How much of the recent past performance of the fund can be attributed to the fund manager in situ?
  • Consistency of performance.
  • Previous experience and track record of the fund manager in running other similar portfolios, strengths and weaknesses.
  • Size and financial standing of the fund group. Assets under management and profitability will be a factor in considering the group’s ability to continue to attract quality fund managers and analysts.
  • Fund size i.e. are there a reasonable level of assets under management?
  • Qualitative ratings of the fund.

Ongoing Monitoring

Ongoing Monitoring

Once managers have been included in the portfolio, formal manager monitoring begins with performance continuously scrutinised, as compared to his or her peers and chosen strategy. In addition, we review the fit between the existing market environment and the manager’s strategy to determine what events may affect the success of the investment strategy.

We also maintain a watch on managers not currently included in order to detect emerging talent and ensure that alternatives to existing managers are available.


3.2. Our Investment Committee

Our Investment Committee

Our Investment Committee meets regularly to review the macroeconomic climate. The committee draws input from a wide variety of sources, including JP Morgan, and Capital Economics, together with an international cross section of fund management houses and independent fund research firms and software.