Investment Analysis and Selection

The mutual funds and money managers are screened and classified according to their asset class. After the managers have been grouped by their appropriate style, each investment is analyzed according to a due diligence procedure developed by Aris called "The Six P's." The following is a synopsis of "The Six P's:"

Philosophy: Does the manager have a well-defined investment philosophy and adhere to it? Does the historical performance overlay, with some consistency, the average historical performance of managers with the same style?

People: Has the manager added value given the amount of risk assumed? Has the manager followed the same investment philosophy in the past? Is the historical performance attributable to the current managers?

Process: What screening criteria does the manager use to select investments? Does the manager have a strict buy/hold/sell discipline? Does the manager use a top-down or bottom-up process?

Progress: Have assets under management increased? How is the manager handling this growth?

Performance: Historical performances, over the last 1, 3, 5 and 10 year periods are compared to the average and actual returns of managers within the same investment style. Historical risk, beta and standard deviation over the last 1, 3, 5 and 10 year periods are compared to the average and actual risk of the managers within the same investment style. Has the manager's performance been consistent in both rising and falling markets?

Periodic Visits: ISG conducts on-site due diligence meetings with all money managers to review and observe their operations.

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