In the quantitative part of the analysis the following is evaluated:
The performance of the total portfolio is measured against a customized composite index that mirrors the quarterly asset allocation of the portfolio for the twelve to twenty-quarter time period of the study.
Individual Investment Managers/Mutual FundsTotal Return
In evaluating the above, the following factors are considered:
Adherence to Stated Investment Style.
The individual investment managers/mutual funds are measured vs. passive market indices and active peer group benchmarks, using modern portfolio theory risk/return statistics.
ASC will provide information as to how to improve the documented investment policy (IPS) to insure compliance with fiduciary standards by verifying that the significant components of a well-written IPS are clearly articulated.
ASC will Perform a Cost
Analysis to Review the Following:
- Review the Investment Management Fees for retained Investment Managers vs. the median for their peer group.
- Check the Expense Ratios for any mutual funds to insure they are at or below median.
- Look at the Custodial Fees to insure they are competitive
- Analyze the transaction cost (when using separate account investment managers) to make sure they fall within a competitive range.