The Manage the Manager system
Fiducian’s Manage the Manager system is a unique, highly active approach to constructing client portfolios. It is based on our belief that building a panel of skilled fund managers with different investment styles, and managing the weight allocated to each manager, works better in the long run than relying on one or two star performers.
The Manage the Manager philosophy
Highly active
The Manage the Manager System can deliver better long-term returns than traditional active or passive investment styles.
Diversification
Exposure across different countries, investment styles and asset classes should deliver better risk-adjusted returns over the long run.
Flexibility
Tilting between asset classes and between value and growth managers at different times will further enhance performance.
Research
A focus on research and a meticulous process of identifying the best fund managers through business cycles will deliver the best investment opportunities.
Conrad Burge, Head of Investments
Manager selection
Choosing the best managers is a thorough process designed to benefit our clients long into the future. The success of our Manage the Manager System stems from our ability to identify, from the tens of thousands of fund managers globally, around 40 active managers with the right credentials to deliver consistently good returns without taking excessive risks.
The diagram illustrates our manager selection process from initial screening to approval.
- 1
Macro overview
Daily research and monitoring of the global market landscape and macro-economic environment. - 2
Quantitative screening
Finds the best opportunities from among the thousands of prospective managers and awards a risk/reward score to each. - 3
Ranking of prospects
Potential fund managers are graded based on their risk/reward scores. - 4
Qualitative research
Analysis of high-ranking prospects digs deeper to understand management stability and expertise, ambition, ownership structure and research capabilities, and strips out performance due to luck or undue risk taking. - 5
Analysis and recommendation
Further in-depth analysis and debate within the investment team and Fiducian Investment Committee, followed by a decision to allocate funds to a chosen manager. - 6
Board approval
Submission to Fiducian Investment Management Services Ltd Board for final approval to appoint new manager.
Unconstrained investment thinking
Fiducian Investment Management Services Ltd is not impacted by external influences and select fund managers for our clients’ portfolios purely on merit.
For over 25 years, our unique and well-performing multi-manager funds provide protection through diversification in different countries and industry sectors across global share and bond markets.
Why a Manager the Manager System?
The system is a multi-manager, multi-style and multi-disciplined process with a tactical asset allocation overlay, delivering client and adviser benefits only possible via our highly active approach.
Greater diversity
The system not only creates portfolios that are diversified across traditional asset classes, but also gives varying exposures across multiple investment manager styles.
Potential outperformance
Diligent monitoring of markets can take advantage of short-term mispricing between asset sectors and create value from style and sector tilts.
Access to world’s best managers
A highly active approach that adds value by high-quality fund manager selection within a robust risk management framework.
Adviser efficiencies
Our holistic asset management offering means less adviser time on portfolio design and management and more on client goals and strategy.
Easy manager switching
Securities are held by Fiducian’s custodian and can usually be transferred between portfolios off-market, bringing tax and cost efficiencies for clients.
Performance monitoring
The Manage the Manager System is an ongoing process, not a one-off selection exercise. We talk regularly with key staff at each of our fund managers to get their latest thinking about the economies, politics and markets in which they operate, and to make sure they haven’t lost key personnel or deviated from their original style or investment philosophy. We don’t hesitate to replace managers who are no longer the right fit for our clients’ portfolios.
Underlying managers within Fiducian Funds
We operate all our funds under our Manage the Manager system, which has underpinned Fiducian’s 25-year history of delivering strong returns without undue risk. Typically, we allocate clients’ funds to a total of around 40 investment managers across the range of Fiducian Diversified and Specialist Funds/Strategies.
Talk to your financial adviser
It's important to talk to a licensed financial adviser before making any decisions about your investments.
Everyone's circumstances are different, so your adviser will create a tailored financial plan with you that sets you on the right path towards achieving your goals.
How to invest in the Fiducian Funds
The first step in investing with Fiducian is to have a chat with your financial adviser.
The Fiducian Funds range of wholesale investment funds are available through master trust, investor directed portfolio services (IDPS) and wrap account superannuation and investment platforms.
The full range of Fiducian Funds is available, along with many other benefits, through our Fiducian Superannuation Service and Fiducian Investment Service.
