Benchmark for right manager

INVESTMENT: BEYOND EVALUATING PAST RETURNS

- Marise Reinach

Investment management is a crucial component in achieving long-term financial goals. However, most investors do not directly hold securities but instead rely on intermediaries, such as pooled investment vehicles or separately managed accounts. These intermediaries entrust the services of professional investment managers who work to help investors meet their objectives.

This article will delve into how investment manager selection takes place in the context of an investor's personal needs.

The role of investment managers

Investment managers serve as intermediaries for investors who typically do not manage their own portfolios. Whether the manager operates within a hedge fund, private equity firm, or unit trust, their primary role is to make informed investment decisions on behalf of their clients to meet specified objectives. The selection of the right manager, therefore, has significant financial consequences.