Pre-investment due diligence and post-investment continuous controlling of your investment managers.

Unless you decide to manage your own invetsments, chosing an or more investment managers will be crucial to providing your portfolio the best return per the risk you decide to take. 

Amid the pressure to get fair rteurn on investments, it is essential to keep away from unscrupulous, incompetent manager.

How? One effective way to minimize your risk is to conduct thorough pre-investment diligence, ideally with the help of a professional.

In fact there are more than many questions to ask when doing a pre-investment diligence. I have group the questions into 5 categories:

1. INDEPENDENCE

Are you dependent or independent?

How are you remunerated?

Do you offer funds or structured products?

Do you have any retrocession contract with any service providers?

Do you provide an aggregation service to minimise Global Custody Risks?

2. RISK MANAGEMENT

Do you measure risk when constructing a portfolio?

Can you permanently measure and manage risk in a portfolio?

Do you relate investment decisions with portfolio performance?

3. OPERATIONS, COMPLIANCE, INTERNAL CONTROL AND PROCEDURES

Do you monitor constraints, limits, rules and special cases?

Do you offer your clients an independent control service?

4. DUE DILIGENCE

Are you able to demonstrate due diligence for all your service providers - custodian, administrators, banks, auditors, Senior employers

5. STRATEGIC

Can you demonstrate in-house skills, experience and integrity in the above areas.

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