Fund Selection

InvesTAO first filters managers based on the following criteria:

1. Strong operational fundamentals: consider AUM, track record, fee structure etc.
2. Long-term outstanding performance in: a single asset class/strategies, or multiple asset classes/strategies.

For funds that pass the first filter, InvesTAO will then conduct a 4-step investment due diligence to examine the all-around competitive advantages of the fund and whether the manager can achieve a sustainable outperformance.

1. Qualitative Analysis:Based on information gathered from corporate filings, due diligence questionnaire, manager interview and on-site visits etc to understand the following: Investment professionals’ credentials, Investment process & risk management, Fund performance & investment strategy, ESG strategy
2. Request for Proposal (RFP): designed to gain a holistic view of the selected managers and their ability to achieve long-term success. The detailed RFP is accompanied by another rigorous review of their business, manager background, operations, risk and compliance, as well as legal structure of their investment products.
3. On-Site Visit: InvesTAO conducts as many on-site visits as needed to meet the managers in their offices, in order to develop a deeper understanding of them on a personal level, and assess their character and integrity, which is a paramount part of this due diligence process.
4. Final Selection: The final selection thesis on each shortlisted manager will be drawn up at this stage. Together with any supporting documents, the thesis will be submitted to InvesTAO’s Board of Directors for their final approval.

InvesTAO conducts ongoing monitoring on all selected managers, accompanied by a monthly review. If any material change (triggers set) from the original investment thesis is detected during monitoring periods, the managers involved may be placed on the InvesTAO Manager Watch List. Placement on the Watch List initiates a probationary period that allows InvesTAO’s Board of Directors to further assess the funds and determine whether the coverage should be continued. The termination of coverage will occur if the trigger is concluded to be detrimental to the potential longer-term success of the manager.