FUND MANAGER SELECTION & OVERSIGHT

Conference held in Toronto on April 10 & 11, 2006
Chairs: Bob Smith, Canadian Forces Personnel Support Agency, Dominic Blais, Canadian Medical Protective Association (CMPA), Brian Holland, Guardian Capital LP, Greg Zdzienicki, Manulife Financial

CD-ROM: Ov. 8 hours of video presentations

To purchase, please contact Federated Press.

SELECTION, TERMINATION AND TRANSITIONS

• CFPSA Pension Fund Experience
• Manager Selection Requirements & Criteria
• Investment Policy Requirements
• Governance Issues and Best Practices
• Benchmark Portfolio Becomes A Critical Element in Investment Policy
• Types of Equity Investment Style

"Manager selection criteria should not only based on well articulated investment approach, performance record and other factors in communications, reporting, fees, existing relationships but also on investment objectives, fund structure, and mandate."

"In manager selection process, detailed review of long list potential candidates yields short listed candidates."

Video: 39 minutes • Overheads

Fund manager selection: A call on a new approach
Michael Sacke, Watson Wyatt Worldwide

• Criteria for Manager Selection
• To identify and evaluate superior managers
• Monitoring Managers on Their Performance
• Exploiting Manager Skill Issues
• Interviewing Investment Managers
• The Manager Skill Cycle

"Alignment of business, people and process strengths lead to sustainable competitive advantage."

"When evaluating a manager, there is a need to attract firm top quality people, requirement of a very good process which is repeatable in all kinds of markets and must be a well managed business."

Video: 35 minutes • Overheads

Transition management: What clients need to be aware of
Shoghig Kulidjian, RBC Dexia Investment Services

• Transition Management Triggers
• Value and Cost of Transition Management
• Transition Manager Model
• Transition Manager Selection Criteria
• Risk & Accountability in Transitions Management

"The largest component of the transition cost is not the commissions that you pay in hard dollars but rather the cost of the opportunity in not being in the portfolio you want to be in."

Video: 33 minutes • Overheads

Panel: When enough is enough – Best practices for terminating fund managers
Bob Smith, Canadian Forces, Personnel Support Agency; Michael Sacke, Watson Wyatt Worldwide and Shoghig Kulidjian, RBC Dexia Investment Services

• Manager Search Process
• Manager Transition Period
• Establish Manager Exit Strategy
• Technology Makes Transition Easy for Portfolio Trading Groups
• Fee Issues
• Market Leakage

"Time used for manager selection process from start to finish will depend upon the mandate of the organization and the decisions made and will need the help of the transition manager in choosing the mix to exposure of what you want."

Video: 15 minutes • Overheads

MONITORING AND ENHANCING FUND PERFORMANCE IN YOUR ORGANIZATION

In-house monitoring vs. outsourcing to consultants: A comparison of risks and rewards
Dominic Blais, Canadian Medical Protective Association (CMPA)

• History of CMPA - Experience and the Evolution of the plan overtime
• Report on the internal development of Public/Private Mandates
• Performance and Risk Information
• Summary of Ratios, Compliance and Attribution
• Establishing the Private Asset Chart
• Having Internal Team Add Value to the Organization

"Asset mix is the main driver of the investment return."

Video: 28 minutes • Overheads

Organizational factors and investment manager returns
David Finstad, Alberta Investment Management

• Traditional Approach to Manager Selection
• ‘5 P’s’ of the Traditional Approach
• Past Performance Correlated to Future Performance
• Research Study on How Organizational Factors Effect Managers Returns
• Key Factors Arising from the Research Study
• Alberta Investment Management (AIM) - Appendix

"High employee ownership, low personnel turnover & concentrated portfolios are correlated with small firm size and with each other."

Video: 24 minutes • Overheads

Monitoring for productive and detrimental behaviours in multi-manager structures
Bruce B. Curwood, Frank Russell Company - Canada

• The Investment Process
• People and Governance Issues
• “The Knowing-Doing Gap”
• Barriers to Turning Knowledge into Action
• Key Requirements for a Successful Investment Program
• The Chair & CIO Play A Vital Role in Effective Fund Governance

"There’s only one solution to be able to avoid governance issues: Keep control over decisions you are competent to make and delegate all other decisions prudently & profitably."

"The time scales of the measurement –how often the firm assesses results helps to establish the time horizons that tend to govern behaviour in the organization."

Video: 35 minutes • Overheads

Differences in selecting & monitoring a fund manager in defined benefit vs. defined contribution plans
Barbara Lomnicki, James P. Marshall

• Identifying the DB and DC Decision Framework
• DB Decision Key Objective
• DB Asset Mix Decision
• DB Management Structure and Manager Selection
• Defined Contribution Plan Design and Investment Structure
• DC Manager & Options Selection

"In the DC world there are some key differences from the DB; The approach to your manager selection process is quite different because the plan design really can determine what sweep of offerings are available and what managers are available to you."

Video: 34 minutes • Overheads

Winning techniques for monitoring a US equity manager
Tim Hague, MD Funds Management Inc.

"Seek companies with a consistent record of strong long term business performance."

Video: 45 minutes • Overheads

Comparing hiring styles: Institutional clients versus retail based organizations
Brian Holland, Guardian Capital LP

• Defined Benefits of the Retail Organization
• The 4 P’s of the Classic Manager Search
• Manager Selection Process
• Reviewing the Growth in Retail Assets
• Examining the Differences and Similarities of Retail and Pension Plans

"Stretch out the hiring process, see them a couple of times or have different people see them and expend the topic range."

Video: 48 minutes • Overheads

Optimizing fund manager relationships while exercising effective monitoring due diligence
Hosen Marjaee, MFC Global Investment Management

"Monitoring and due diligence is an ongoing process that has to be kept on and on to ensure from either looking at hard data from portfolio perspective, performance, risk in the portfolio or some of the softer issues."

Video: 25 minutes • Overheads

TECHNIQUES FOR MONITORING AND ANALYSIS

Improving manager diligence and monitoring using holdings-based style analysis
Bernie Nelson and Robert Schwob, Style Research Inc.

"Does Style have a future and how is Style likely to mature?”

Video: 52 minutes • Overheads

Monitoring for style purity on an investment mandate
Greg Zdzienicki, Manulife Financial

"I-Watch Commentaries summarize the findings of schedule review. These rigorous reviews monitor each fund, fund manager and portfolio to make sure it continues to meet our high standards. If a fund or fund manager fails to meet our standards they are put “on watch” and reviewed quarterly."

Video: 36 minutes • Overheads