In your search for an investment manager or successor trustee, there is much to consider.
People
- Who in the organization will actually manage your money?
- How long have they been in the investment business?
- What is their background?
- Who have they previously worked for?
- Do you feel comfortable with them?
- Do you trust them?
- Will you be able to sleep at night knowing they're making decisions that affect your future?
Process
- What is their investment philosophy and approach to investing?
- How often has their investment philosophy changed during the past 10 years?
- How dependent is their process on one or two individuals?
Performance
- Is the pattern of returns consistent with the manager's investment style?
- Has past performance been competitive with other managers of similar style or compared to indexes such as the S&P 500?
- Do the results you're viewing represent a broad cross-section of accounts managed, or are you only looking at their best-performing portfolios?
- Does the manager display well-articulated account objectives and the resulting returns? What should you be looking for?
- Professionals with management experience in both favorable and adverse markets
- A responsive and timely decision-making process
- An understandable investment philosophy
- A disciplined investment approach that's logical, well articulated and suggests consistency
- Confirmation that all fees have been disclosed
- Thoughtful parameters for risk-taking
- Noncommission-based investment advice
- Proven ability to add value
- Personalized, local service
Clearly, there is much to consider in the selection of an investment manager. It is a complex matter that requires many questions and a thorough understanding of your own goals and individual requirements. The more you know about the process, the more understandable the picture becomes. Go slowly. Demand clear answers. There is much at stake.
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