Due Diligence
PacReef considers:
- The proposed investment strategy and the adviser's approach to selecting and divesting of assets in the portfolio. (Philosophy)
- The adviser's past experience and discipline in managing the proposed asset class/investment style. (Process)
- Historical performance of the incumbent and proposed funds, supported by PacReef's own back testing when we assess replacing one fund with another across the various portfolios. (Performance)
- The resources available to the adviser. (People)
- Any constraints on portfolio composition, the likely frequency of asset transactions and the frequency of rebalancing the portfolio. (Complexity)
- Expected inflows and likely market impacts. (Size)
Policy Documentation
A detailed Investment Policy document is prepared covering the investment strategy, investment objective, performance objectives, the investment benchmark against which performance will be assessed, the portfolio structure, frequency of balancing, the investments that can be held, an understanding of investment risks and how they are identified and managed. We also assess the reporting requirements expected for investors.
Investment Decisions
The investment committee meets at least quarterly to review the investment recommendations of the Investment Program Manager or Program Manager of the portfolio. PacReef works with the Program Manager to conduct a review of investment markets and understand their impact on the portfolio. The investment committee discusses potential new investments and reviews underperforming assets. Finally, the various weightings of the assets are reviewed and reassessed.
Implementation
All changes to the portfolio caused through the acquisition or disposal of investment assets or from rebalancing the relative weightings of the assets within the portfolio are performed as a single event so that all transactions occur at the same time and price, whilst the ownership of the underlying assets of each portfolio is made in the investor's name.
Periodic Review
Investors receive personalised reporting on their actual performance, all additions or withdrawals from their portfolio, all transactions relating to acquisition, disposal or rebalancing of underlying assets in the portfolio as well as a commentary on the overall portfolio and market performance.