Monitor


The final step follows monitoring procedures outlined in the client’s Investment Policy Statement.

  1. Provide performance monitoring oversight of the portfolio or plan
  2. Prepare monthly Flash reports
  3. Prepare quarterly in-depth performance reports
  4. Renegotiate vendor contracts when required
  5. Review risk management analysis of the portfolio or plan

Performance & Attribution Management

In the performance monitoring of portfolio or plan investment options, we hold managers accountable to the mandates and performance objectives that are specified in the Investment Policy Statement.

The managers of each style group are measured relative to an active peer group and a passive benchmark using risk-adjusted returns, portfolio characteristics and holdings-based style analysis.

We review the stability and turnover of the key investment professionals on the management team, focus on a clearly defined investment philosophy, that is consistently applied, and we look for consistent above median peer group performance over time.  We place great importance on the firm structure, professional staff and the investment process.

We evaluate managers by looking at qualitative factors, such as investment portfolio turnover, staff turnover, ownership changes, and financial soundness.  Any changes in these components can cause shifts in performance.  Additionally, we meet with firms and investment professionals to understand the nuances of the process.  It is important for us to understand the economic conditions where the manager will excel, and the economic conditions where the manager will lag their peer group.  Even the best manager will have a difficult year or two as shown by the financial crisis of 2008.

Monitoring the specific performance of investment managers and service vendors includes an analysis of not only “what happened?” but also “why?”  The analysis combines the disciplines of performance measurement – the science – with performance evaluation – the art.

Published Performance Reports

Monthly “Flash Report”

A monthly report designed to provide a summary of account market values and total portfolio and retained manager performance against appropriate passive benchmarks.

Quarterly “Performance Reports”

A comprehensive quarterly report that provides detailed analysis of the total portfolio and retained managers, with:

  • Active peer group benchmarks;
  • Passive indices benchmark;
  • Manager attribution analysis;
  • Performance from inception dates; and
  • Risk statistical analysis.

Annual Illiquid Alternatives Report

This report is specific to illiquid alternative investments held in client portfolios and addresses the client’s total allocation to private equity, venture capital, private real estate and private real assets partnerships.  In addition, for each illiquid investment performance analysis against both vintage year peer groups and public markets passive indices.

Risk Management Analysis

A well-conceived asset allocation strategy will allow investors to control risk and improve overall performance.  We view risk control as a critical point in our asset allocation efforts with clients.  In effect, we strive to develop appropriate long-term portfolio strategies, which allow clients to achieve investment objectives with the least amount of risk.