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Evaluating Investment Managers
In the course of evaluation we
ask four key questions when choosing managers for your money:
- Does the manager have a clearly defined objective?
A clear objective helps determine whether the manager is right for a specific investor. It also provides a benchmark against which to measure performance and helps ensure consistency of investment policies and practices within the manager's firm.
- Does the manager have a well-established investment discipline?
We seek managers who adhere
to well-established methodologies that have proven successful
over time. These managers use unique methods that we feel have
contributed to their past successes. We only seek
those whose records demonstrate good skills rather than good luck.
- Does the manager have the potential and the resources to meet stated objectives over time?
We review each manager's professed objectives and assess what value the management firm brings to you.
- What have been the manager's results?
We look for managers with steady performance, year after year.
Seeking managers whose
performance is consistent with their goals and corresponds to
market history. We don't expect that future performance will be
positive each quarter or year - no manager can do that year in
and year out - but we do expect money managers in the RJCS
program to be consistent with their objectives and to outperform
the indices more often than not.
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