Post Selection or Monitoring Process
After a manager is selected and placed on our platform, our work is not done. We view the relationships that we have with our managers as a working partnership. We are in constant communication with all of the managers on our platform.Every Monday, key members of our customer services team and our research team get together and review all of our managed accounts. This weekly review allows us to closely examine the activity within our accounts and leads us to evaluate the performance of our managers. On a more technical level, we look at divergence of account holdings and performance on all accounts managed by each specific portfolio manager. Too wide of a difference within these categories may indicate a drift in style or inconsistent management techniques. Regardless, this is definitely a red flag and requires additional investigation. If there is a reason for the differences, such as special client instruction, then the concern is dropped. However, if there is no acceptable reason, then the manager’s performance and investment process is reevaluated in more detail.

As we monitor our managers, if there is a problem either with underperformance or with style drift, we will stop recommending that manager. A continuation of the problem will result in TrustNavigator recommending to all of the current clients managed by the manager in question that they move their portfolio under the management of a new portfolio manager, either in the same style, or in a totally new asset class (providing it fits within the clients risk parameters and will meet the same needs). A demonstration of style drift, erratic investment decisions and/or activity, and gross underperformance to
their appropriate peer group are all grounds for removing a manager from our platform. Using our objectivity, we are continually recreating our platform of managers to include only those organizations and people that we feel demonstrate a level of competency and integrity appropriate for our clients.