Manager Selection Process

At RAA, we utilize extensive research tools to make sure we have your assets allocated to the best possible investment managers. Our process in selecting the best managers within this universe has been refined and empirically tested over the past 25 years. With more than 18,000 investment options available to us within our universe, our selection process is both extensive and complete in selecting managers for your portfolio.

Screening Process

Investment managers are screened relative to their peer group universe. Using tools such as Morningstar Principia and PSN Enterprise, we rank each manager into peer group quartiles based on important modern portfolio statistics. These statistics include expense ratio, sharpe ratio, information ratio, upside capture ratio, downside capture ratio, batting average, standard deviation, and correlations. Ranking screened managers for our selection process will depend on the specific characteristic we desire for the overall portfolio, based on existing and expected future market environments.

Selection Process

Before selecting a position, we must satisfy our requirements to understand the people, process and performance of the investment. First, we must have a detailed understanding of the investment team that is responsible for creating the historical and future performance of the position we select. Next, we must achieve a comprehensive review of the investment process each position utilizes. Finally, we must understand the historical and expected future performance characteristics of the investment we select.

Monitoring Process

We make sure that each position constantly ranks high relative to their respective peer group universe. In addition, we track each manager to make sure their people, process and performance meets our internal requirements. Furthermore, we maintain a back-up manager list for each position within our portfolio. Each actively managed position is measured relative to their respective benchmark, peer group universe and our underlying back-up manager list.