There are many factors taken into consideration when choosing new funds to add to our range. It’s crucial that we evaluate the compatibility of these funds with our own values and how they can meet the needs of our investors. We do this by assessing four key areas:
To help us assess the strength and consistency of the manager, we evaluate the quality of the management team, the experience and turnover of senior staff – particularly the fund manager – and how the team members work together.
We look at the underlying discipline and effectiveness of fundamental processes such as portfolio construction and risk management and the way in which the business principles are applied.
We look at the way in which they have achieved their results and how they are likely to fare in the future. We are looking for evidence of a repeatable process as opposed to fortunate stock selection.
We use a range of different tools to thoroughly measure the overall performance of the manager.