Outside Manager Selection
We operate within an open architecture structure, utilizing both our internally managed equity strategies as well as externally managed funds. The "core" of our clients' portfolios are typically comprised of internally-managed equity strategies and individual investment grade bonds. Depending on the needs and goals of the client, we may complement their portfolio with external mutual funds and/or exchange traded funds.
As with our five equity strategies, the selection of all outside managers, including exchange traded funds (ETFs), mutual funds, partnerships, or separate account managers, is made in a disciplined and deliberate way. Our due diligence process includes a review of people, process, and performance. Our qualitative analysis focuses on whether a manager's decision-making processes are sound and repeatable so that we can depend on the fund to perform as we would expect. We place little emphasis on short-term performance history relative to a benchmark, and we consider risk an important element when evaluating performance.