Our goal is to know your managers so well that you don't need to.
We want you to feel informed and in control, so your governance budget is better spent on the things that matter most.
You need to know each client’s unique objectives and constraints
What is appropriate for one client will not necessarily be appropriate for another. All of our advice is made against each client’s bespoke objectives and constraints. There are no recommendations that apply consistently to all of our clients, helping us to avoid “flavour of the month” consulting.
You need inside-out knowledge of managers with whom clients are invested
Our research is very deep and focused on understanding the key areas of competitive advantage (such as conviction, decision making and execution advantages) as well as risk factors (like size, culture and process drift). This helps us focus on the areas that matter, and helps our monitoring/engagement stay focused on it.
You do not need a huge team of researchers
There is real value for clients in having a small, experienced and joined-up team of market practitioners leading relevant and differentiated manager research. We are not forced to monetise our research; we don’t push ideas; we don’t sell our research. Whatever we do is focused on adding value for our clients.
You do not need to know every fund manager in every strategy
Most managers hire the same kinds of people, train them using the same models and incentivise them in the same way to deliver similar benchmark results. There are cheaper and more capital efficient ways to get benchmark returns. We have a clear 10-factor screening process that allows us to focus only on exceptional managers.
Redington’s proprietary 10-factor process works across all strategies, regions and asset classes.
The 10x10x10 manager selection process is a robust framework used to Screen, Select and Monitor managers. We focus on high-conviction fund manager selections in three categories (Preferred, Retained, Ones-to-Watch) that can fulfil the strategic investments of our clients in the most appropriate format.
Stage 1 – Screen
Our process begins with screening the manager universe for a particular asset class or strategy. Following a Request for Proposal style questionnaire, inappropriate managers are ruled out based on 10 key criteria – these criteria include business alignment, capacity available and fees.
Stage 2 – Select
Successful managers are then selected into three categories (Preferred, Retained, Ones-to-Watch) based on their ability to demonstrate a competitive advantage in each of 10 categories – these categories include advantages in information, risk management, strategy and execution.
Stage 3 – Monitor
The team pro-actively monitors each manager on 10 key factors via “Red Radar”, Redington’s proprietary monitoring tool. This allows us to actively engage a manager on any issue highlighted by Red Radar – these issues include client dependency, key person risk, process drift and business ownership.
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