We believe that identifying managers that can meet a fund’s objectives is one of the most important roles of an investment consultant.
Our proprietary process begins with documenting the reasons for the search, taking note of each client’s specific needs, objectives, and sensitivities. NEPC has developed minimum criteria for each asset class, and we monitor a variety of internal systems and databases, including eVestment Alliance (eA), and Morningstar to find and track managers that can meet them.
We employ two more unique resources: our own NEPC database, housing all of our Due Diligence data, and our proprietary Performance Analytics Statistical Software (PASS) system, which allows our analysts to compare investment returns on an “alpha”-only, net of fees basis with other key performance indicators.
We review candidates objectively and methodically and can then assist with the interview process to help you make the most informed decision possible.
The NEPC Manager Review and Search Process
- Initial Screening — Determine if managers meet NEPC's developed minimum criteria.
- Quantitative Review — Using NEPC's proprietary Performance Analysis Statistical Software (PASS), isolate and examine excess return ("alpha") over time.
- Qualitative Review — Conduct in-depth analysis of organizational structure, investment team, product review, portfolio attribution, and style. Develop Investment Thesis.
- Formal Written Analysis & Due Diligence Committee Vetting — Conduct due diligence meetings. Submit formal written analysis and supporting documentation to Due Diligence Committees for vetting. NEPC's due diligence process is ongoing.
