Asset manager & fund selection is a critical step in implementing any investment program or strategy. The investment policy statement and the investment objectives have important implications for asset manager & fund selection.
The process of hiring an asset manager or selecting a strategy requires a disciplined and structured approach to fulfill the fiduciary duty. We understand that the laws governing fiduciary duty might vary across the globe but the principle of working in the best interest of beneficiaries and clients is a universal concept.
The objective of the search and selection process is to identify the most suitable manager or investment that adds value to the asset owner’s portfolio.
Best Practice Principles
In the context of a Search Request investRFP recommends to asset owners to follow these 12 fundamental principles:
- Uphold fiduciary duty throughout the process and act in the interest of beneficiaires.
- Define the level of transparency to match your individual requirements.
- Communicate with providers utilizing the integrated message system.
- Follow a structured process and select a suitable request format (RFI, RFP, etc.).
- Address a broad and unbiased universe of providers or define your own universe.
- Use your proprietary questionnaire or select from a range of industry templates on the platform.
- Define a timeline and schedule of events and inform about any expected delays.
- Provide guidance on the relative weighting of sections in the evaluation process.
- Integrate sustainability and responsible investment principles where applicable.
- Analyze responses and benefit from evaluation and documentation options during the selection process.
- Value the work and effort of disqualified providers by giving meaningful feedback.
- Finalize the shortlist and continue direct communication with providers.
These fundamental principles apply to RFIs, RFPs and all other request formats.