Page 10 - DCAC November 2023 Files

Following a Prudent Due Diligence Process

Implement – Manager Selection

In creating a best-in-class investment menu, focus on process.

Consider the following:

CONSIDERATIONS
Example – Large Cap Growth: 762 with 10-year track record • Performance percentile
rank over multiple
timeframes
• Manager tenure
1 • Expenses
Open-end Universe With No • • Asset size
Minimums
Proprietary Funds • Open/Closed to new
investments
2
Screens, Relationships, Other Sources
CONSIDERATIONS
3 • Performance attribution –
High-level Elimination ‘whys’ of performance
• Edge over peers
• Detailed Due Diligence
4 Qualitative Deep Dive on Investment Products - • Questionnaire
Pros and cons
People, Process, Organization, Philosophy

5 Debate and Discussion CONSIDERATIONS

• Risk assessment
• Style analysis
6 Investment Committee Approval • Regional/Sector
exposures
• Performance consistency
• Up/Down capture
• Management turnover
• External research

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