Retirement plan fiduciaries have a responsibility for the prudent selection and monitoring of plan investments. If your investment selection decisions are based solely on investment style, fees and historical returns, you may be missing the larger picture. In this presentation, we present a rigorous, multi-step process for selecting investment managers to serve your plan’s and participant’s needs. Using a use case scenario, we will demonstrate how to define the “Investment Universe”, the use and limitations of quantitative analysis, conducting proper qualitative due diligence, and the selection of a prudent investment for a participant-directed defined contribution retirement plan.
Under ERISA Section 408(b)(2), retirement plan fees must be reasonable in light of the services being rendered. Retirement plan fees are also a hot target in the courts, most notably with last year's Tussey vs. ABB, Inc. decision. In this presentation, we discuss just what the reasonableness standard means for today's retirement plan sponsors, and an action plan for employers.
Under ERISA Section 408(b)(2), retirement plan fees must be reasonable in light of the services being rendered. Retirement plan fees are also a hot target in the courts, most notably with last year's Tussey vs. ABB, Inc. decision. In this presentation, we discuss just what the reasonableness standard means for today's retirement plan sponsors, and an action plan for employers.
Callan’s 2014 Investment Management Fee Survey provides a current report on institutional investment management fee payment practices and trends. To collect this information, Callan sent an electronic questionnaire to a broad sample of U.S.-based institutional fund sponsors and investment management organizations. Respondents provided fee information for calendar year 2013 (specific dates varied by organization, but the majority were as of December 31, 2013), and perspective on fee practices and perspectives for 2014. We supplemented this data with information from Callan’s proprietary databases to establish the trends observed in this report.
Callan conducted similar surveys in 2004, 2006, 2009, and 2011. We offer commentary regarding differences, where relevant, between historical survey results and the 2014 findings, along with observations reflecting both long- and short-term trends.
Seventy-two fund sponsors representing $859 billion in assets, and 211 investment management organizations with $15 trillion in assets under management, provided detailed fee practices and data on 15 asset classes. Results were supplemented by actual and published fee information sourced from Callan’s fund sponsor and investment manager databases, as well as other industry sources.
Key Findings:
*Investment management fees represent 46 basis points (bps), on average, of fund sponsors’ total assets, up from 37 bps in
2009. The difference between the median and average has climbed over this time period. Other data in Callan’s fee survey also reveals a divergence between the funds that pay the most and those that pay the least in investment management fees.
*The range between funds that paid the most (10th percentile) and those that paid the least (90th percentile) increased dramatically:
from 56 bps in 2009 to 73 bps in 2013. Differences in investment policy, and notably asset allocation, can lead to
substantial disparity in fees. While some funds are increasingly looking to low-cost, public market index strategies, others are
investing a greater portion of their portfolio in high-cost alternative assets. Other key survey findings include:
Alternatives, which are consistently the most expensive asset class, are facing fee compression: the median total asset class fee declined from 134 bps in 2009 to 99 bps in 2013, and the 90th percentile fell from 174 bps to 152 bps. Large allocations to alternatives can greatly increase overall investment management fees.
Correlations between percentage of total portfolio allocated to alternatives and fees paid (in bps) were strong in 2013 (+0.70).
Total U.S. and non-U.S. equity fees paid increased marginally from 2009 to 2011, but declined from 2011 to 2013. Median U.S. equity fees run about 60% of their non-U.S. counterparts. Non-U.S. fees are typically higher in part due to research expenses. Fixed income median expenses were flat from 2009 to 2013.
The law firm's investment management practice represents a full range of U.S. domestic and non-U.S. clients
in all aspects of their organization and operations. Our clients include start-up investment managers/advisers and
investment funds, seasoned private equity and venture capital professionals and established/industry-recognized investment companies and institutions.
Want more information? Get our Udemy course for only $1 today! Provide your email address at http://www.advisory-board.info/ and get access!
Sign up for our INVESTyR Daily Insider Newsletter: http://eepurl.com/IbP31
INVESTyR’s Facebook: https://www.facebook.com/INVESTyR
INVESTyR’s Strategic Finance Blog: http://www.investyr.com/blog/
INVESTyR’s ONLINE COURSES AND PRODUCTS:
Agile Financial Modeling http://bit.ly/1cYP4rC
Throw Away Your Pitch Deck! http://bit.ly/1dQo7aN
How to Hack an Investors Brain http://bit.ly/18aOvaG
The Quick and Dirty on Videos that Move Money http://bit.ly/1bdTEzz
Me and Your Money: P2P Lending Revealed http://bit.ly/1aavrfU
Use Crowdfunding to Raise Money http://bit.ly/HJnR2D
Raising Capital with Ease: AngelList and Gust http://bit.ly/1fmJgcS
Influence Investors: Secret Twitter Tactics for Fundraising http://bit.ly/13ZzDJ6
Learn How to Find Investors Quickly! http://bit.ly/16962Cy
Use LinkedIn to Find Investors http://bit.ly/12C1waX
How Do I Set My Startups Valuation? http://bit.ly/1hQmEnn
How Much Money Should You Raise? http://bit.ly/1fmJ6lR
Successful Fundraising: The Roadmap to Money http://bit.ly/18aO8gh
Assemble an A+ Advisory Board http://bit.ly/12C1IHk
Find & Assemble a DealTeam http://bit.ly/12C1EXZ
Fundraising Masters: The Ultimate Resource to Raising Money http://bit.ly/ZO7kx5
RECOMMENDED RESOURCES:
Google Hangout based Entrepreneur Pitch Clinic: http://bit.ly/17HgIvb
Google Hangout “Fundraising in the Digital Economy” Presentation: http://bit.ly/1epTX0A
VELOCITY TRAINING PROGRAM (12 week intensive training): Coming soon!
Each month, join us as we highlight and discuss hot topics ranging from the future of higher education to wearable technology, best productivity hacks and secrets to hiring top talent. Upload your SlideShares, and share your expertise with the world!
Not sure what to share on SlideShare?
SlideShares that inform, inspire and educate attract the most views. Beyond that, ideas for what you can upload are limitless. We’ve selected a few popular examples to get your creative juices flowing.
People Capability Maturity Model - is a maturity framework that focuses on continuously improving the management and development of the human assets of an organization. It describes an evolutionary improvement path from ad hoc, inconsistently performed practices, to a mature, disciplined, and continuously improving development of the knowledge, skills, and motivation of the workforce that enhances strategic business performance. The People Capability Maturity Model (People CMM) is a framework that helps organizations successfully address their critical people issues. Based on the best current practices in fields such as human resources, knowledge management, and organizational development, the People CMM guides organizations in improving their processes for managing and developing their workforces. The People CMM helps organizations characterize the maturity of their workforce practices, establish a program of continuous workforce development, set priorities for improvement actions, integrate workforce development with process improvement, and establish a culture of excellence. Since its release in 1995, thousands of copies of the People CMM have been distributed, and it is used worldwide by organizations, small and large. First published in book form in 2001, it is in print in several editions worldwide, and a second edition was published in July 2009
It has been an eternal debate whether one should take MBA or do CFA. Binod Shankar, CFA, Managing Director of Genesis Institute explains the advantages and features of each.
Callan’s 2014 Investment Management Fee Survey provides a current report on institutional investment management fee payment practices and trends. To collect this information, Callan sent an electronic questionnaire to a broad sample of U.S.-based institutional fund sponsors and investment management organizations. Respondents provided fee information for calendar year 2013 (specific dates varied by organization, but the majority were as of December 31, 2013), and perspective on fee practices and perspectives for 2014. We supplemented this data with information from Callan’s proprietary databases to establish the trends observed in this report.
Callan conducted similar surveys in 2004, 2006, 2009, and 2011. We offer commentary regarding differences, where relevant, between historical survey results and the 2014 findings, along with observations reflecting both long- and short-term trends.
Seventy-two fund sponsors representing $859 billion in assets, and 211 investment management organizations with $15 trillion in assets under management, provided detailed fee practices and data on 15 asset classes. Results were supplemented by actual and published fee information sourced from Callan’s fund sponsor and investment manager databases, as well as other industry sources.
Key Findings:
*Investment management fees represent 46 basis points (bps), on average, of fund sponsors’ total assets, up from 37 bps in
2009. The difference between the median and average has climbed over this time period. Other data in Callan’s fee survey also reveals a divergence between the funds that pay the most and those that pay the least in investment management fees.
*The range between funds that paid the most (10th percentile) and those that paid the least (90th percentile) increased dramatically:
from 56 bps in 2009 to 73 bps in 2013. Differences in investment policy, and notably asset allocation, can lead to
substantial disparity in fees. While some funds are increasingly looking to low-cost, public market index strategies, others are
investing a greater portion of their portfolio in high-cost alternative assets. Other key survey findings include:
Alternatives, which are consistently the most expensive asset class, are facing fee compression: the median total asset class fee declined from 134 bps in 2009 to 99 bps in 2013, and the 90th percentile fell from 174 bps to 152 bps. Large allocations to alternatives can greatly increase overall investment management fees.
Correlations between percentage of total portfolio allocated to alternatives and fees paid (in bps) were strong in 2013 (+0.70).
Total U.S. and non-U.S. equity fees paid increased marginally from 2009 to 2011, but declined from 2011 to 2013. Median U.S. equity fees run about 60% of their non-U.S. counterparts. Non-U.S. fees are typically higher in part due to research expenses. Fixed income median expenses were flat from 2009 to 2013.
The law firm's investment management practice represents a full range of U.S. domestic and non-U.S. clients
in all aspects of their organization and operations. Our clients include start-up investment managers/advisers and
investment funds, seasoned private equity and venture capital professionals and established/industry-recognized investment companies and institutions.
Want more information? Get our Udemy course for only $1 today! Provide your email address at http://www.advisory-board.info/ and get access!
Sign up for our INVESTyR Daily Insider Newsletter: http://eepurl.com/IbP31
INVESTyR’s Facebook: https://www.facebook.com/INVESTyR
INVESTyR’s Strategic Finance Blog: http://www.investyr.com/blog/
INVESTyR’s ONLINE COURSES AND PRODUCTS:
Agile Financial Modeling http://bit.ly/1cYP4rC
Throw Away Your Pitch Deck! http://bit.ly/1dQo7aN
How to Hack an Investors Brain http://bit.ly/18aOvaG
The Quick and Dirty on Videos that Move Money http://bit.ly/1bdTEzz
Me and Your Money: P2P Lending Revealed http://bit.ly/1aavrfU
Use Crowdfunding to Raise Money http://bit.ly/HJnR2D
Raising Capital with Ease: AngelList and Gust http://bit.ly/1fmJgcS
Influence Investors: Secret Twitter Tactics for Fundraising http://bit.ly/13ZzDJ6
Learn How to Find Investors Quickly! http://bit.ly/16962Cy
Use LinkedIn to Find Investors http://bit.ly/12C1waX
How Do I Set My Startups Valuation? http://bit.ly/1hQmEnn
How Much Money Should You Raise? http://bit.ly/1fmJ6lR
Successful Fundraising: The Roadmap to Money http://bit.ly/18aO8gh
Assemble an A+ Advisory Board http://bit.ly/12C1IHk
Find & Assemble a DealTeam http://bit.ly/12C1EXZ
Fundraising Masters: The Ultimate Resource to Raising Money http://bit.ly/ZO7kx5
RECOMMENDED RESOURCES:
Google Hangout based Entrepreneur Pitch Clinic: http://bit.ly/17HgIvb
Google Hangout “Fundraising in the Digital Economy” Presentation: http://bit.ly/1epTX0A
VELOCITY TRAINING PROGRAM (12 week intensive training): Coming soon!
Each month, join us as we highlight and discuss hot topics ranging from the future of higher education to wearable technology, best productivity hacks and secrets to hiring top talent. Upload your SlideShares, and share your expertise with the world!
Not sure what to share on SlideShare?
SlideShares that inform, inspire and educate attract the most views. Beyond that, ideas for what you can upload are limitless. We’ve selected a few popular examples to get your creative juices flowing.
People Capability Maturity Model - is a maturity framework that focuses on continuously improving the management and development of the human assets of an organization. It describes an evolutionary improvement path from ad hoc, inconsistently performed practices, to a mature, disciplined, and continuously improving development of the knowledge, skills, and motivation of the workforce that enhances strategic business performance. The People Capability Maturity Model (People CMM) is a framework that helps organizations successfully address their critical people issues. Based on the best current practices in fields such as human resources, knowledge management, and organizational development, the People CMM guides organizations in improving their processes for managing and developing their workforces. The People CMM helps organizations characterize the maturity of their workforce practices, establish a program of continuous workforce development, set priorities for improvement actions, integrate workforce development with process improvement, and establish a culture of excellence. Since its release in 1995, thousands of copies of the People CMM have been distributed, and it is used worldwide by organizations, small and large. First published in book form in 2001, it is in print in several editions worldwide, and a second edition was published in July 2009
It has been an eternal debate whether one should take MBA or do CFA. Binod Shankar, CFA, Managing Director of Genesis Institute explains the advantages and features of each.
This presentation shares a case study of pioneering work completed with Northwestern Mutual, in which we identified and proved a series of leader behaviors that predicted productivity performance. I served as the program's agency lead and lead planner.
Chris Lovelock shares how portfolio management thinking is evolving along with available technology to optimise a portfolio for improved strategic value from capital.
Target date funds are quickly becoming the dominant investment option within many defined contribution retirement plans. Regulators have taken notice with the Department of Labor (DOL) contemplating new disclosure requirements for plans offering target date funds.
In order for a plan sponsor to meet their fiduciary obligations to prudently select and monitor their target date funds, a thorough analysis is necessary because of the underlying complexity of these products and their unique structure relative to the traditional "core" investment options that defined contribution sponsors are used to evaluating.
In this program, we present a framework for a sound fiduciary evaluation of a target date series.
Development of business strategies and business models for associationsajcortese
In order to fulfill their founding missions, several Associations observed a growing pressure on increasing their financial and business performance, with the objective of maximizing the generation of resources to be re-invested into relevant and valuable benefits, products and services for their stakeholders.
Associations, and their executives, are today called to a higher level of challenge in outlining effective strategies, drafting effective business plans and defining systems to monitor the efficiency of their organization.
Even with the most earnest intentions, mistakes inside of a retirement plan will most likely happen from time to time. Plan sponsors can take solace in knowing that there is a corrective solution for nearly every compliance problem. Knowing how to correct a plan error will help plan sponsors act swiftly so as not to ripen the problem should one occur. It can also help save the plan sponsor money. In this program, Multnomah Group will provide an overview of the correction programs available through both the Internal Revenue Service (for Internal Revenue Code issues) and the Department of Labor (for issues under the Employee Retirement Income Security Act).
The legislative landscape in which retirement plans must operate is constantly evolving to meet the need for an appropriate level of industry regulation. Legislative and regulatory activity during 2013 to date has created numerous opportunities and challenges that retirement plan sponsors must address. In this program, Erik Daley, CFA, will provide an overview of this year's legislative and regulatory developments and focus on practical, consultative tips on how they might apply to your retirement plan.
The past 30 years has born witness to the collapse of the private pension system with for-profit employers, tax-exempt entities and now the governmental sponsors replacing defined benefit pension programs with defined contribution plans. This practice spawned a well-documented transfer of investment and funding risk from employer to employee. Now, most defined contribution plans render the employee the sole decision maker on the four factors that determine an employee's ability to retire successfully: contribution rate, investment strategy/return, time horizon, and spending needs in retirement.<br /><br /> In this presentation we will address what employers can do to help employees meet the demands of the new retirement plan era.
Retirement plan sponsors have a multitude of recordkeeping vendors from which to choose in assisting them with plan administration, compliance and participant education. Each potential vendor espouses a value proposition, which must be weighed in relationship to the plan’s needs, goals and objectives to determine if that particular vendor is a suitable fit.
While conducting a vendor search may seem burdensome, the benefits associated with the search make it more than worthwhile. By conducting a vendor search, plan sponsors can satisfy certain fiduciary responsibilities and optimize the plan’s benefit to its participants. Moreover, the perceived vendor search burden is significantly eased when a few simple best practices are followed.
In this presentation, we explore the benefits and best practices associated with conducting a vendor search. It concludes with three case studies that demonstrate the positive results and improvements that plan sponsors might expect from a well executed vendor search.
The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s DholeraAvirahi City Dholera
The Tata Group, a titan of Indian industry, is making waves with its advanced talks with Taiwanese chipmakers Powerchip Semiconductor Manufacturing Corporation (PSMC) and UMC Group. The goal? Establishing a cutting-edge semiconductor fabrication unit (fab) in Dholera, Gujarat. This isn’t just any project; it’s a potential game changer for India’s chipmaking aspirations and a boon for investors seeking promising residential projects in dholera sir.
Visit : https://www.avirahi.com/blog/tata-group-dials-taiwan-for-its-chipmaking-ambition-in-gujarats-dholera/
Implicitly or explicitly all competing businesses employ a strategy to select a mix
of marketing resources. Formulating such competitive strategies fundamentally
involves recognizing relationships between elements of the marketing mix (e.g.,
price and product quality), as well as assessing competitive and market conditions
(i.e., industry structure in the language of economics).
Business Valuation Principles for EntrepreneursBen Wann
This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
Affordable Stationery Printing Services in Jaipur | Navpack n PrintNavpack & Print
Looking for professional printing services in Jaipur? Navpack n Print offers high-quality and affordable stationery printing for all your business needs. Stand out with custom stationery designs and fast turnaround times. Contact us today for a quote!
Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
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Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
https://seribangash.com/promotors-is-person-conceived-formation-company/
Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
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Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
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At its core, generative artificial intelligence relies on the concept of generative models, which serve as engines that churn out entirely new data resembling their training data. It is like a sculptor who has studied so many forms found in nature and then uses this knowledge to create sculptures from his imagination that have never been seen before anywhere else. If taken to cyberspace, gans work almost the same way.
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A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
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LA HUG - Video Testimonials with Chynna Morgan - June 2024Lital Barkan
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Improving profitability for small businessBen Wann
In this comprehensive presentation, we will explore strategies and practical tips for enhancing profitability in small businesses. Tailored to meet the unique challenges faced by small enterprises, this session covers various aspects that directly impact the bottom line. Attendees will learn how to optimize operational efficiency, manage expenses, and increase revenue through innovative marketing and customer engagement techniques.
2. Agenda
• Investment Philosophy
• Process Overview
• Quantitative Analysis
• Qualitative Due Diligence
2 Investment Manager Selection
3. Scott Cameron, CFA
Scott is the Chief Investment Officer for the Multnomah Group and a Founding
Principal of the firm. In that role, Scott leads Multnomah Group’s Investment
Committee, is responsible for the development of the firm’s investment
research methodology, and conducts investment manager due diligence. Scott
also consults with plan sponsors on investment menu design, investment
manager selection, fiduciary governance, and vendor fees/services.
Prior to founding the Multnomah Group, Scott was an investment consultant
with a national retirement services firm.
Scott is a member of the CFA Institute, the CFA Society of Portland, the
Investment Management Consultants Association, and the Portland Chapter of
the Western Pension & Benefits Council. Scott holds a B.S in Management
from Purdue University.
3 Investment Manager Selection
4. Investment Philosophy
• Grounded in Modern Portfolio Theory (MPT)
• Risk and return are highly correlated
• Index funds are prevalent across asset classes
• Provide asset class exposure
• Low cost
• Minimize “active” risk (tracking error)
Annualized Return (Last 10 Years)
14.00
12.00
S&P 500 Index
10.00 (7.10%)
8.00
6.00
4.00
2.00
0.00
Source: MPI Stylus, Morningstar US Mutual Fund Database, The peer range shows distinct Large Value, Large Blend, and Large
Growth funds with a 10 year track record
4 Investment Manager Selection
5. Process Overview
Define the Investment Universe
• Investment Style Purity
• Investment Style Consistency
• Expenses
• Manager Tenure
Conduct the Quantitative Analysis • Diversification
• Manager Skill
• Consistency of Manager Skill
• Risk
• Investment Philosophy and Process
• Investment Staff Tenure and Experience
• Firm Stability
Complete the Qualitative • Shareholder Friendliness
Due Diligence • Asset Base and Asset Growth
Recommend
Funds
5 Investment Manager Selection
6. Define the Investment Universe
• 10,000+ distinct mutual funds in U.S.
• 2,000+ collective investment trusts (CITs)
• Insurance company separate accounts and ETFs
• Filter out non-institutional investment products (B and C share funds, etc.)
• Sort into peer groups
• Morningstar Category™ is common industry methodology
• Currently maintain 53 peer groups in our internal database
6 Investment Manager Selection
8. Investment Style Purity
• Participant Focus on Asset Allocation
• Investment Products are Tools for Building Asset Allocation
• Lack of Style Purity Indicates Potential Future Risk
8 Investment Manager Selection
9. Investment Style Consistency
• Lack of Style Consistency at Odds with Asset Allocation Decisions
• Market Timing is a Difficult Method for Active Managers to Add Value
9 Investment Manager Selection
10. Expenses
• Net of Fee Performance is What Investors Care About
• High Expenses Create Hurdle for Active Management
• Need to Earn Higher Gross Returns to Deliver Equivalent Net Returns
• Rewards Should Accrue to Investors, Not Investment Manager
• Expense Ratio May Include Revenue Sharing
• Focus on Institutional Share Class for Apples-to-Apples Analysis
• Revenue Sharing is a Separate Decision From Investment Manager Selection
• Turnover Ratio
• Proxy for Trading Costs and Market Impacts
• Impact is Dependent on Liquidity of the Market and Size of the Portfolio
10 Investment Manager Selection
11. Manager Tenure
• Is the Performance Track Record Relevant?
• Longer Tenure:
• Historical Performance is Less Attributable to Market Dynamics
• Stability is Indicative of Future Stability
• Tenure is a Flag for Qualitative Analysis of Investment Team.
11 Investment Manager Selection
12. Diversification
• Measure of Risk Management
• Concentrated Portfolios Are Generally Not Appropriate in DC Investment Menu
• Total Number of Holdings
• % of Assets in Top 10 Holdings
• Level of Diversification May Vary by Asset Class
• Government Bond Funds
• REITS
• Sector Funds
• TIPS
12 Investment Manager Selection
13. Manager Skill
• Seeking to Identify Managers that Can Outperform the Market on a Risk-
Adjusted Basis
• Fund’s Returns are attributable to:
• Market Performance – performance attributable to market exposure (available
through index fund)
• Market Timing – performance attributable to deviations from long-term style
• Security Selection – performance attributable to picking securities within
benchmark
• Different Measures of Manager Skill
• Excess Return – simplest measure comparing fund’s performance against
benchmark performance
• Security Selection – used style-adjusted customized benchmark to evaluate
value added (subtracted) through security selection decisions
• Alpha – style-adjusted customized benchmark that identifies whether a fund has
outperformed expectations given its style exposure
13 Investment Manager Selection
14. Manager Skill (cont…)
24M Rolling Selection and Timing Returns Quarterly Excess Returns
4.0 8.00
6.00
3.0
4.00
2.0
A n n u a liz e d R e t u rn s
2.00
Excess Return, %
1.0
0.00
0.0
-2.00
-1.0 -4.00
-6.00
-2.0
Jan-10 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12
Selection Timing -8.00
Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12
24M Rolling Alpha
4.0
3.0
2.0
1.0
0.0
-1.0
-2.0
-3.0
-4.0
-5.0
-6.0
Jan-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12
USD, 36-month centered window; exp. weighted
14 Investment Manager Selection
15. Consistency of Manager Skill
• Past Performance Can Be
Misleading
• One Strong Period Can Skew
Results for Many Years 24M Rolling Batting Average
• Seeking to Identify Managers that
Can Consistently Add Value
• Batting Average
• # of months a fund outperforms the
benchmark divided by the total # of
months in the measurement
window
• Does not address magnitude of
outperformance
15 Investment Manager Selection
16. Risk
• Risk is Defined Many Ways
• Volatility
• Loss of Principal
• By Type of Risk
• Inflation Standard Deviation (Annualized)
• Credit
• Interest Rate
• Opportunity Costs
• Standard Deviation is Common
Measure of “Risk”
• Measures volatility of returns
• Other Risk Types are Captured
Through our Quantitative Analysis
16 Investment Manager Selection
18. Qualitative Due Diligence
• Quantitative Analysis is the Guide
• Qualitative Review is Ultimately Most Important Step
• Trying to Understand “Why” a Fund Behaves the Way it Does
• Areas of Focus
• The Firm
• Investment Personnel
• Investment Strategy
• Shareholder Friendliness
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19. The Firm
• What Type of Firm is It?
• Small, boutique investment manager
• Insurance company
• Publicly traded asset manager
• Bank subsidiary
• One Size Does Not Fit All
• What is the Ownership Structure of the Firm?
• How does ownership impact the culture?
• Is a transition/succession plan in place?
• Is the business core to the parent organization?
• How Stable has the Firm Been Historically?
• Have their been changes in ownership structure?
• Have their been changes in leadership?
• What is the Firm’s Culture?
• How does the firm’s structure support or demonstrate its culture?
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20. Investment Personnel
• Funds Don’t Have Track Records, People Do.
• What is the Structure of the Investment Team?
• Single portfolio manager or team?
• Centralized research analysts or team-specific?
• Analysts assigned a sector or generalists?
• What is the Experience of the Investment Team Together?
• Portfolio Manager(s) [Manager tenure is a limited measure of experience]
• Research analysts
• How Does the Team Interact?
• Is there a king?
• Does the team strive for consensus?
• Does everyone understand their roles and responsibilities
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21. Investment Strategy
• How Do They View the Market?
• What is Their Unique Edge in Adding Value?
• Is it Consistent with Their Investment Philosophy?
• Is it Reasonably Grounded in Fundamental Research?
• What is the “Buy” Discipline?
• How do securities end up in the portfolio?
• What is the “Sell” Discipline?
• How do securities leave the portfolio?
• Is the Historical Track Record Consistent with the Articulated Investment
Strategy?
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22. Shareholder Friendliness
• What is the Capacity of the Fund?
• How Do They Manage Capacity?
• Have they implemented fund closures?
• Do they compensate managers for performance or asset growth?
• Do They Charge Reasonable Fees?
• Have they lowered fees as funds grow in size?
• Do They Communicate Changes in a Timely Manner?
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23. Recommend Fund
• There is No “Best” Fund.
• Is it Consistent With the Client’s Investment Objectives?
• How Does it Compare to the Rest of the Investment Menu?
• Are There Any Operational Issues with the Fund?
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24. Disclosures
Multnomah Group, Inc. is an Oregon corporation and SEC registered investment
adviser.
Investment performance and returns are based on historical information and are not
a guarantee of future performance. Investing contains risk. Some asset classes
involve significantly higher risk because of the nature of the investments and the
low liquidity/high volatility of the securities.
Any information and materials contained herein or on our website are provided for
general informational purposes only and are not intended to be comprehensive for
any particular subject. Multnomah Group utilizes information from third party
sources believed to be reliable but not guaranteed, and as a result, information is
provided to you "as is." We do not represent, guarantee, or provide any warranties
(either express or implied) regarding the completeness, accuracy, or currency of
information or its suitability for any particular purpose. Multnomah Group shall not
be liable to you or any third party resulting from any use or misuse of information
provided.
Receipt of information or materials provided herein or on our website does not
create an adviser-client relationship between Multnomah Group and you.
Multnomah Group does not provide tax or legal advice or opinions. You should
consult with your own tax or legal adviser for advice about your specific situation.
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