Our Process - Monitor Managers and Allocations

"Ashbridge manages risk and reward by monitoring managers and allocations on a continuing basis. This ensures adherence to the client's investment policy."

Once a policy has been adopted, we monitor the asset allocation as well as the performance of all managers to determine if the goals of the investment policy are being met. This process proactively identifies deviations from policy that may require changes in managers or allocations as well as possible advantageous market conditions that can be exploited.

Manager Monitoring

Managers are monitored on an ongoing basis using the same quantitative and qualitative criteria as when they were selected for investment management. We continually monitor:

• Conformity to established and documented investment processes, including style, strategy or asset class
  
  
• Organizational and personnel continuity
  
  
• Conformity to established buy decisions or sell disciplines
  
  
• Performance against style benchmarks and peers
  
  

Our initial screening of managers, coupled with our proactive approach to monitoring, severely reduces but does not completely eliminate the need for occasional manager terminations. When circumstances deviate from expected norms, Ashbridge raises relevant issues with the client and, if warranted, reallocates funds.

Allocation Monitoring

Allocations are monitored to manage risk and return based on changing client objectives and market conditions. Changes in allocations may be warranted based on:

• Changing client objectives
  
  
• Changes in relative market conditions
  
  
• Necessary rebalancing to policy
  
  

Both types of monitoring ensure optimal adherence to the client's investment policy. By identifying deviations from policy early, underperformance is minimized. Also, monitoring identifies advantageous market or tax opportunities that may present themselves.