Investment Manager Search Process

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1. Minimum Criteria Screens

• History (five years experience preferred, at least three years experience if team departed an experienced firm)
  
• Insurance expertise
  
• Clean composite (audited, AIMR compliant preferred)
  
• Verifiable performance above stated benchmark for majority of periods examined
  
•  Assets

2. Qualitative Screens

• Firm
  
• Product
  
• Insurance Industry Capabilities
  
• Philosophy/Process
  
• Personnel
  
• Fee Structure

 

3. Quantitative Screens

• Combination of incremental return, beta, information ratio, Sharpe ratio, up-market capture, down-market capture, consistency of alpha, and composite quality over multiple time periods (to avoid end point dependency).

4. Reconciliation of Qualitative and Quantitative Scores to Form Recommendation

5. Team Review

• Screening criteria and results of top scoring managers summarized for review and selection of top managers.

6. Finals Presentation and Selection of Managers

 

Due Diligence

We make a point to fully understand those investment managers that provide services to the insurance industry and to identify those managers who have the potential to add value. Following the initial selection of managers, we recommend a formal program in which due diligence reviews are scheduled throughout the year.

This process consists of reviewing performance relative to peers, analyzing return and portfolio data for style drift, performing in-depth manager interviews, phone conversations and issuing periodic manager reports to update our clients and our colleagues as to any relevant changes in the manager’s style, focus, firm structure or performance. Peer Analytics is proactive in recommending a manager review meeting if there is an indication that changes may be occurring or if sudden changes have occurred in the structure, focus or performance of the firm. Often we can identify potential problems within management firms that have not yet become apparent.

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