Fund Manager Research, Selection & Monitoring

Smart, efficient and focused starts with a solid foundation.

A well-conceived investment strategy is made up of far more than the mechanics of portfolio management. It factors in a personal, deep understanding of an investor’s goals and aspirations for the future. It can help provide answers to their questions, fulfill their needs and match their risk tolerance.

A well-conceived strategy means nothing without the leadership and insight of an experienced, passionate advisory team. It’s a responsibility we don’t take lightly — and why we approach the investment manager research, selection and monitoring process with rigor, focus and robust resources at our disposal.

How We Design Client Portfolios

Throughout the year, our Investment Research Team performs extensive due diligence on the mutual funds and managers that comprise our clients’ investment strategies. Their mission: to ensure your plan and portfolio utilize the best resources possible.

Step 1: Follow the Four Ps

When vetting potential mutual funds and managers, we follow a set of disciplined, systematic criteria:

The Right People

As an SEC-registered investment advisor, we uphold the fiduciary standard of care, which means that every recommendation we make begins and ends with our clients and their best interests — period. We expect the same conduct and diligence out of the mutual fund managers with whom we partner.

Our Investment Research Team stays up to speed on portfolio management and organizational changes at current managers, while continuing to collect and analyze data across the entire industry to ensure we’re delivering a rewarding experience to our clients. Adhering to fiduciary standards, we do not seek or accept financial incentives to recommend or retain managers, which allows us to keep our focus on the options that are best suited to our clients and their individual circumstances.

A Disciplined Philosophy

When it comes to equity investing, we concentrate on factors we can control and follow an empirical, consistent approach. That means choosing providers who manage portfolios emphasizing broad diversification and low-cost, advanced tax management strategies. Our research team also focuses on managers who target segments of the equity market that have historically generated higher returns, including small-company stocks, value stocks and highly profitable stocks. On the fixed income side, we work with managers who employ a value-added active approach.

A Disciplined Process

Many of our clients are investing for goals that are 10, 20 or 30 years into the future. Discipline is a key ingredient to achieving those objectives and ensuring long-term success.

To support this approach, our firm utilizes resources from industry-leading firms like Callan Associates and Morningstar to ensure managers stay true to their stated investment strategies and deliver the returns of the asset class they have been engaged to provide exposure to. Our Investment Research Team pays attention to how managers handle cash inflows and outflows, trading, tax consequences and other decisions that directly impact our clients’ investment returns and their long-term financial plans.

Competitive Performance

When it comes to investing, we don’t play the guessing game. We aren’t trying to chase returns and speculate the next hot stock, or which country will be the next top performer. Instead, we follow time-tested, Nobel Prize-winning research into the behavior of financial markets and stick with our overall philosophy to help secure better long-term outcomes for our clients.

Our approach blends low-cost, passive solutions with high value-added active managers to position our clients’ portfolios to capture after-tax growth. The Investment Research Team pores over industry databases, insights and other analytics to monitor and evaluate fund performance, focusing on managers who have historically shown consistency to help our clients maximize future opportunities.

Step 2: Seek Insight from Industry Leaders

When they partner with us, our clients are not only benefiting from the proven experience of our Investment Committee. They’re getting access to robust investment resources, research and knowledge, developed by some of the most respected leaders and innovators in the space.

Who? Dimensional Fund Advisors

Since 1981, Dimensional has provided institutional investors with access to small-company stocks, which were previously under-represented in most investors’ portfolios. Over the years, Dimensional has maintained an institutional focus, going beyond the role of a standard mutual fund provider to offer valuable research, resources and knowledge to help advisors better serve their clients.

How Dimensional Helps Our Clients

Our firm shares Dimensional’s views about the way capital markets work, and the belief that strategies rooted in empirical, time-tested research can provide clients with successful investment experiences. With three Nobel laureates on its board, Dimensional funds are structured to deliver low-cost exposure to sources of higher expected returns, as well as increase returns through advanced portfolio design and trading.

Who? Callan Associates

Callan Associates oversees more than $1 trillion on behalf of the largest institutional investors in the United States and around the world. Our firm is also a member of Callan’s select Independent Adviser Group (IAG), which is comprised of 30 select investment advisors and other financial intermediaries.

How Callan Helps Our Clients

Through the IAG, our Investment Advisory Council has access to exceptional consulting resources, as well as a team of professionals dedicated to private due diligence and screening on an average of 1,200 money managers and mutual funds each year. We use Callan’s research to help inform our approach to asset allocation, fund recommendations and portfolio monitoring.