Resources for Investment Manager Audits
Benchmarking Principles and Construction
The evaluation of an investment manager requires tools for determining whether or not the manager took appropriate risk to earn the return needed in accomplishing the investor’s objectives. Without these benchmarking tools, no objective judgment about risk and return can be made. Without a plumb line it is impossible to know if the wall is straight.
For years, the investment industry has promoted the virtues of hedge funds and private equity funds for large instructional investors and ultra high net worth individuals. But over the last few years these products have come under increased scrutiny because the hoped-for benefits have, for the most part, not materialized.
Investment Manager Request for Proposal TemplateThe prudent selection of an investment manager will often require a Request for Proposal (RFP) process amongst multiple candidates to determine who is most suitable and qualified to manage the assets. Following is a questionnaire tool that we use as we conduct a manager search.
White Paper: When Should You Fire Your Investment Manager?It will be time to part ways with your investment manager when, over a protracted period of time, your investment manager has been unable to accomplish the job they were hired to do. The problem is knowing how to define that job description and measure the manager’s activities and performance against it.
A prudent investor will know what they are paying in fees. But few investors can identify who is being paid what, and whether those costs are reasonable. In this market study, we examine data from investment advisers across the country to identify industry-average fee levels for a range of portfolio sizes.