Fund Manager Review
An example of a manager assessment template typically utilized in reviewing an unlisted Fund Manager product may include;
EXAMPLE ONLY
| Factors | Weight | Category | Score | Weighted Score |
| Qualitative | 55.0% | 20 | 45.0% | |
| 10.0% | Business Management | 4 | 8.0% | |
| 15.0% | Investment Team | 5 | 15.0% | |
| 15.0% | Investment Process | 4 | 12.0% | |
| 10.0% | Risk & Compliance | 3 | 6.0% | |
| 5.0% | Administration & Systems | 4 | 4.0% | |
| Quantitative | 25.0% | 8 | 20.0% | |
| 15.0% | Performance | 4 | 12.0% | |
| 10.0% | Key Statistics | 4 | 8.0% | |
| Other | 20.0% | 9 | 18.0% | |
| 10.0% | Product Attributes | 4 | 8.0% | |
| 10.0% | Peer Review | 5 | 10.0% | |
| Total | 100.0% | 37 | 83.0% |
From the weighted score achieved in the assessment, the product is assigned a rating based on the aggregate final score achieved. Scores for each sub-category are based on 1 to 5 with 1 being poor and 5 being outstanding.
Rating the Scores
The score card is the basis for determining the internal Product rating. The product above scored a weighted score of 83% which falls between 75% and 84% therefore the product rating would be deemed to be “Well Regarded”.
The scores are assessed as follows:
| Score Card | Ranking | Rating |
| 85% | 100% | Highly Regarded |
| 75% | 84% | Well Regarded |
| 60% | 74% | Investment Grade |
| 50% | 59% | Watch |
| 40% | 49% | Others Preferred |
Fund Managers and their products are researched through a process that involves face to face meetings andextensive qualitative and quantitative analysis involving:
- Business Management,
- Portfolio Manager;
- Relevant sector stock or credit analysts; and
- A mix of administrative support functions.
Each Fund Manager is researched as per the client brief and a report generated with an opinion of the product for further review by the client which is normally conducted by the Dealer Group Investment Committee.
Approved Product List
Once a product is reviewed and approved by the Investment Committee of the Dealer Group for Adviser use, the Fund Manager product will appear on the Approved Product List (APL) menu under the relevant asset class for use by Authorised Representatives whom may then use the APL to construct a client’s portfolio’s as per the Strategic Asset Allocation guidelines for each risk profile.
FOX is also able to provide guidance on Model Portfolios covering the major risk profiles. The Strategic Asset Allocation and Tactical Asset Allocation models are generally provided by the Dealer Group as a guide for Advisers building their own portfolio’s but they are also expected to conduct their own due diligence of the product they choose for their client.
The same process is undertaken for private mandates where the report is usually commissioned by the Board of Trustees overseeing the Investment Committee.
