Page 9 - 2020 PSK Portfolio - Client Name

objectives, we will re-engage with the client to ensure they are comfortable with the
direction of process and analysis.

2. Qualitative and quantitative analysis

Whilst the analysis and assessment of any product is somewhat backward looking,
our analysis aims to be as forward looking as possible. This includes a particular
focus on whether the product and manager’s success is repeatable, whether the
market environment now and in the medium term is conducive to the manager’s style
of investing, and whether the team dynamic and quality staff will remain with the
organisation into the future.

Given the focus on being forward-looking, that means that approximately 80% of our
time is spent on the qualitative assessment with the remaining 20% spent on
quantitative analysis.

3. Consideration of research from other sources

This includes review and analysis of data from sources such as retail research
houses, institutional research coverage and broker reports.

4. Meetings with fund managers
On a stand-alone basis, this is the most important part of the research and selection
process, as it allows detailed investigation into their philosophy and management
style.

Meetings with portfolio managers are focused on ‘5 p’s’:
a) people
b) process
c) parent
d) price, and;
e) performance.

Meeting with senior analysts or other key decisions makers is especially important
where there is a team-based approach or a flat hierarchical structure is prevalent. For
example, where a strategy derives the majority of idea generation and/or alpha from
particular part of the market, then that analyst/sector head should be engaged with.
Where there is quite a heavy top-down approach and a senior economist or an
external consultant is used, they will also be an integral part of the discussion.