Once Aall STAR Asset Management decides on a fund, our due diligence process evolves into a similarly multi-faceted risk monitoring function.

Areas of Risk Monitoring

This process involves regularly reviewing each fund within the portfolio to ensure that it continually qualifies to remain within the portfolio. As a minimum the fund will be reviewed on a monthly basis. This is to ensure that the fund manager continues to perform and adds value. At the first signs of any deviation from the norm, we contact the manager directly and obtain an explanation. If we are still not satisfied after receiving the managers comments, we would alert the investment committee and conduct a full series of peer group analysis tests in order to find potential replacement fund.

The main purpose of the continual fund monitoring is to protect the portfolio from managers that fail to add consistent value, which also serves as additional protection from serious downside losses caused by any one particular fund.

 

Each manager within the fund needs to continually qualify to remain a constituent.

 

Aall STAR Asset Management also utilizes a number of independent, sophisticated quantitative measurement tools to monitor the performance of its funds. Aall STAR Asset Management personnel review changes in a variety of factors, including changes in: organization, investment process, the manager's view of the relevant markets, and their portfolio's position with respect to those views.