RESEARCH PROCESS

Zenith offers its clients access to those investment managers identified as "best of breed" through a comprehensive, multi-dimensional selection process. The selection process is rigorous in both its qualitative and quantitative analysis. As a dedicated provider of managed funds research, Zenith is completely objective in its selection process.

Our philosophy and commitment is simple, by scouring the investment landscape in a diligent and detailed fashion, Zenith is able to uncover the best investment opportunities on behalf of our clients.

SECTOR UNIVERSE & SCREENING

Zenith utilises an intensive qualitative screening process that highlights those fund managers worthy of consideration.

The research team begins by identifying those funds available to advisers via the major wrap platforms and master trusts. Zenith currently focuses on the platforms used by the majority of advisers. At present this universe represents approximately 1300 funds.

In addition to the collection of data and monitoring of these funds, Zenith monitors alternative and emerging boutique managers which are not widely covered on mainstream commercial databases.The collection of in-house propriety data is not widely done in the marketplace but Zenith considers this an important source of value add, with many hidden opportunities uncovered prior to commercial database coverage.

The research team then splits the universe into the asset classes and sub-asset classes and screen their sectors quantitatively. Zenith selects a list of leading contenders who pass the initial screens. These quantitative screens include performance, consistency and risk statistics as well as returns based style and attribution analysis. All quantitative measures are examined over multiple rolling time periods.

For comparison purposes, managers are reviewed amongst both their peers within their sector, but also importantly with other managers of the same style.

The research team consider factors which could impede attractively ranked funds from repeating strong returns generated in the past. 

Examples include organisational issues or major staff changes.

The end result is a list of the stand-out opportunities in each asset class, which the Zenith research team then assess further.

DUE DILIGENCE / MANAGER REVIEW

Once the contenders list has been finalised, more detailed face-to-face due diligence is undertaken with the investment manager. It is at this stage of the process where we probe deeply to understand all the nuances of the investment manager from its overall philosophy and process to the quality, experience and track record of the investment team. A thorough review of all documentation, including The Investment and Financial Services Association Limited (IFSA) investment process material, and an in-depth "look under the covers" with respect to the portfolio. 

Once this due diligence has been finalised, a formal research report is completed and a rating is assigned. A recommended list is then formed based on the highest rated funds in each asset class. This recommended list forms the basis of Zenith’s model portfolios.