All of the investing institution’s internal investment managers and external investment managers (“managers”) are monitored from a forward-looking perspective, with the key aim of determining whether they are likely to generate future outperformance net of fees.

The process of monitoring a manager is very similar to that of selecting a manager; therefore, factors considered as part of the selection of the manager should be incorporated into the monitoring process, i.e. consideration of manager portfolios, strategy and risk, and qualitative factors, such as business factors, people and the investment process adopted.

Manager compliance and style monitoring complement performance and risk analysis monitoring and should be an integrated part of the monitoring process of internal and external fund managers.