Manager Search, Selection and Evaluation
We conduct outside manager searches, determine manager selections, and evaluate their performance regularly. We do this as part of our investment management process, and we also provide these services on a consulting basis to fiduciaries. Our goal is to hold the most attractive asset classes and to have “best-in-class” managers selecting individual securities for each asset class in which you’re invested.
As part of our evaluation process, we consider the merits of both active and passive managers. We have no vested interest in either management style and use both types of managers as appropriate. Our interest is in obtaining the best cost structure for the best returns. Since active managers have higher fees, we evaluate them from the perspective of the value they deliver for those fees. If active managers are not delivering value, then we use lower-cost index products.
Overall, we seek to access outside managers in the manner that is most appropriate for your management strategy and delivers the greatest value. In cases where it makes sense, we will establish relationships with active managers and have them manage a separate brokerage account. In other instances, we will retain their services through their retail or institutional-class mutual funds purchased at their net asset value. And, if appropriate, we will access passive managers through low-cost index funds or exchange-traded funds (ETF).