- Our robust selection philosophy
-
Our robust selection philosophy, overseen by the RaboPlus Investment Committee, aims to:
Develop a diversified offering of quality fund managers and managed funds.
Provide customers with exposure to teams of investment professionals and managed funds which provide exposure to global investment strategies and investments.
Develop a diversified menu of asset classes and investment strategies using independent research and due diligence.
We use external and independent research and due diligence conducted by professional researchers and assets consultants to accompany the fund manager and fund selection process.
The key objectives of our selection process are:
Top down: set broad asset class parameters to ensure diversification of the managed funds offered to customers.
Bottom up: use external and independent research and due diligence in order to establish eligible fund managers and managed funds to provide sufficient investment strategy diversification.
High quality: seek established fund managers with sufficient investment management experience, who have teams of well credentialed investment professionals across a variety of broad asset classes and offering specialist investment management experience.
- In depth research of fund managers and managed funds
-
The detailed analysis conducted on the fund manager and managed fund is performed by independent and specialised researchers and asset consultants.
Importantly, they are responsible for conducting the in-depth due diligence and analysis across all aspects of a fund managers business to establish whether the fund manager has sufficient financial strength to conduct a creditable long term investment management business.
As part of the analysis conducted by researchers and consultants, they also establish whether the fund managers have sufficiently credentialed and experienced teams of investment professionals to achieve their stated investment objectives.
Since much of the analysis is conducted on a relative basis and compares similar managed fund investment strategies against one another, the researchers and consultants are able to develop a relative peer analysis of the fund manager and their managed funds. Thus, RaboPlus is able to review fund manager and managed funds ratings on a relative basis across similar investment strategies in order to establish who meets the RaboPlus investment selection criteria by directly comparing the ratings of one managed fund against another.
This part of our process is very important. As RaboPlus provides customers with access to fund managers who have teams of investment professionals all over the world, it is crucial that these specialist researchers and consultants conduct their review on the investment professionals in their own offices and to ensure they cover all aspects of a fund manager's business and assess their capacity to manage global investment strategies.
Fund managers and managed funds are required to meet minimum 'Investment Grade' ratings and require at least two separate independent ratings from researchers and / or consultants to be eligible.
- Selection process overview
-
To ensure that we offer customers a diversified selection of professional fund managers, RaboPlus requires that all fund managers and their investment professionals meet certain minimum standards. For example:
Fund manager selection criteria
Well established and credentialed quality fund managers responsible for managing a broad suite of managed funds diversified by asset classes and investment strategy. In looking at the relative quality of a fund manager, RaboPlus consistently utilises external and independent research and due diligence conducted by the researchers and consultants.
Fund managers would typically be recognised by their peers for their relative expertise across a sector/asset class, nominated investment strategy and also exhibit and deliver operational, or administrative excellence to investors.
Display core strengths and to provide RaboPlus with comfort as to their ability to meet their long term investment objectives.
Funds Under Management - A fund manager must manage more than the minimum stipulated by RaboPlus and must also display a capacity for further growth.
Experience - A fund manager must have a sufficient and easily identifiable track record in managing the investment strategy.
Fund manager must also meet all industry and regulatory standards as well as meeting the appropriate licensing requirements.
Managed fund selection criteria
A slightly different and more specific approach is taken in evaluating eligibility criteria for managed funds. For example:
Assets Under Management - The fund must be of a sufficient size to ensure it is able to provide sufficient liquidity for RaboPlus customers, but also have capacity for further growth.
The team of investment professionals responsible for managing the managed funds must be adequately educated, experienced and equipped to fulfil their stated investment objectives.
Performance History - Each fund must have a minimum performance history in order to display a proven track record in managing the investment strategy which underpins the managed fund. (Past performance is not an indicator of future performance.)
All funds must meet minimum administrative and operational criteria to ensure that RaboPlus is able to deliver best practice administration for our customers.
- Detailed selection criteria
-
RaboPlus applies rigorous selection criteria to the managed funds we offer our customers. Below, we discuss the standards we incorporate with the goal of providing our customers with access to high quality, diversified managed funds.
Top down - Diversification by asset class
To ensure our customers are provided with balance, choice and diversity when choosing their managed funds, RaboPlus requires that fund managers and managed funds meet prescribed standards and maintain a minimum diversification across asset classes.
Bottom up - Diversification by investment strategy
We also insist the philosophy of diversification is applied across the investment strategies of the managed funds offered via RaboPlus.
Fund managers
Management history
Fund managers and their investment professionals must meet minimum criteria set by RaboPlus to ensure they have sufficient investment management experience to achieve their stated investment objectives.
Funds Under Management
The fund manager must manage more than a prescribed minimum of Funds Under Management.
Managed funds
Performance History
Each managed fund must meet minimum investment performance track record criteria to ensure they have sufficient experience to allow the external and independent researchers and consultants to conduct their review, due diligence and analysis of the fund manager's investment professional's long term performance and ability to meet the managed fund's investment objectives.
Assets Under Management
Each managed fund must meet our minimum Assets Under Management (AUM)criteria. Fund managers must manage sufficient AUM a specific fund, across a specific investment strategy, or within a pool of assets invested under a the same or a similar investment strategy.
Research
Managed funds must meet the minimum 'Investment Grade' ratings criteria and maintain at least two ratings from independent ratings or consulting agencies.
Administration and Operations
The managed fund must meet minimum operational and administrative requirements to ensure that RaboPlus is able to meet our administrative and operational undertakings to our customers.
- The role of the RaboPlus Investment Committee
-
The primary function of the Investment Committee is to uphold the RaboPlus selection philosophy.
The Investment Committee is also charged with the responsibility of acting prudently and to safeguard the criteria, guidelines and procedures of the selection criteria and process for selecting, adding, removing or placing 'on hold' fund managers and/or managed funds that RaboPlus provides access to, to act in good faith and in the interests of all RaboPlus customers.
This primarily includes the responsibility of managing and maintaining the fund managers and managed funds offered via RaboPlus and also ensuring that all funds continue to meet our selection criteria.
The role of the Investment Committee is not to verify the quality of the fund managers and/or managed funds.
