Investment Process Documentation

The asset management profession is under pressure from many sides. Increased transparency regarding fees and other costs have made investors more acutely interested in knowing what they pay for. The rapid rise of ETF’s demonstrates a profound doubt regarding the ability of active managers to create alpha. The new benchmark regulation will only increase the focus on asset managers claiming to be active while in fact being near-index managers.

It all translates into a higher degree of scrutiny of what asset managers actually do when they go to work. It should be no surprise that there will also be less tolerance for underperformance.

A properly documented investment process is a healthy basis. It is only possible to introduce rational and systematic changes to a process if the process is well known. It is important to know if the results obtained depend on the man/woman in the drivers’ seat or on the investment process.

Among the partners of OAS, some have a long experience as investment managers, and we can produce a description of your investment process by interviewing your staff, by revieing the portfolios, the performance reports and the documentation created when portfolio changes are implemented.

And it all starts from a question, simple to ask but sometimes hard to answer: what is the central element in the investment process allowing you to generate excess performance?