FAQs

What is ASC's research philosophy?

Our research process utilizes a standardized set of industry tools combined with our own in-house monitoring of managers. In an ongoing process we regularly field-visit managers and endeavor to compile a complete picture of every manager that our clients consider and use. We believe that a well rounded picture is not just the quantitative aspect of the manager's performance but also the qualitative aspects of the manager's process and personnel.

Explain the difference between qualitative and quantitative research?

Qualitative Research:

Our evaluations of investment managers includes a detailed visit with the manager and a statistical review of their performance in the context of their stated style and in relation to their peer universe and benchmark. We evaluate their investment process, compliance and risk policies as well as ownership issues that may lead to or are apparent conflicts of interest.

We examine:

  • Investment Process
  • Human Factor Interaction
  • Risk Policy and Compliance
  • Ownership Structure and Conflicts of Interest

We intend to know investment managers better than any other professional asset services firm.

Quantitative Research:

Information is only useful if actionable. We uncover the dynamics of why individual managers achieve the results they do. We deliver this information in an understandable format so clients gain an acute insight to the investment philosophy.

We see that our core task is to assure that any given manager is fulfilling the task that they have been given - to manage assets according to a specific investment style. Our responsibility to our clients is to assure them that the managers are on track and to be vigilant so that if a manager deviates from their assigned task, we know about it.

How do you Track manager performance?

Tracking performance and measuring the success of a manager is the core of what we do.

For example. Is a 10% return good performance or bad performance? If the market did 14% you might say that a 10% increase is a bad performance. If, however, the 10% performance was created smoothly and evenly in small even increments over a period of time and the 14% market performance was full of troughs and peaks, then the predictable 10% increase might be preferable to the volatile 14%. Most clients exchange risk for predictability.

We track real data to calculate performance. This creates a cohesive and reliable picture for our clients and keeps managers honest.

Is there an auditing function to keep managers accountable?

We calculate and verify returns internally. We input data from our client's custodial reports and conduct regular due diligence to verify the validity of the performance results. In addition to performance we monitor fees and costs of service to the client we report to our clients on the custodial, brokerage and transaction costs and compare them with the accepted standards.

On a quarterly basis we audit the managers for any changes in management or ownership and we require that managers put us on immediate notice for any regulatory citations or violations. In addition to this we carefully inquire on any changes to investment process or risk profile.

Does your consulting practice include a perspective on all global markets?

Yes we cover all international and domestic asset classes.

As a core practice, we look at the impact of macro structural changes to the domestic, global, emerging and international economies. Our analysts and consultants collaborate to assess the breadth of investment styles comprising the asset allocation mix of our clients so as to assure an efficient mix of styles.