Manager evaluation

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Our thoroughness in examining every aspect of manager performance makes Milliman a top choice for evaluations. Whether it's scrutinizing people or processes, monthly and quarterly fund-performance data, or conducting manager interviews, our depth of experience shines through.

Milliman can evaluate how the manager's track record stacks up against expected performance and against the performance of peers. If even subtle warning signs are spotted, we can create a watch-list report so that our client can quickly grasp the nuances of the problem and closely monitor the situation.

We visit dozens of managers in person each year because we believe regular on-site meetings are invaluable for understanding manager performance. Because we come prepared with in-depth qualitative and quantitative data about manager performance, we can move quickly to address the crucial questions at hand.

Searching our manager database

If a client decides to replace a manager, Milliman can search its own database of more than 1,500 managers. Our database includes historical return information and is enhanced by our personal knowledge of managers' portfolio management styles and processes. We begin by identifying the client's asset allocation philosophy and future performance goals and then select appropriate possible manager candidates.

Evaluating and correcting unfavorable performance

One recent client contacted Milliman with concerns about the underperformance and volatility in its small-cap fund. Milliman experts prepared an in-depth questionnaire for the manager and then followed up with an on-site visit.

The findings: The investment manager's firmwide small-cap holdings were more extensive than board trustees initially realized. The holdings had grown so large in many small-cap stocks that the manager was unable to take advantage of the type of small-company opportunities that had been integral to building the track record.

Milliman advised the client to terminate the manager, and the client began a process to replace it with one more skilled at keeping the fund's small-cap allocation within the desired parameters.