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Identifying the right PMS from a universe of more than 2,000 investment approaches requires skill, methodology, data, experience and expertise. We've built the RIGHT PMS framework to identify it — and combined with your risk profile, it makes a winning combination. The objective is not to find the “best” PMS, but the PMS strategy that best fits the investor.
Start by understanding the investor's ability and willingness to take risk.
QuestionsClearly define the purpose of investing. A PMS strategy should directly support the primary objective.
Possible objectivesInvestment horizon significantly influences strategy selection. The longer the horizon, the greater the ability to absorb short-term volatility.
| Investment horizon | Suitable PMS style |
|---|---|
| Less than 3 years | Conservative or low-turnover strategies |
| 3–5 years | Balanced growth strategies |
| More than 5 years | Concentrated growth and mid/small-cap strategies |
Evaluate the investment process rather than chasing recent performance. A repeatable process is generally more valuable than one exceptional year of returns.
AssessExamine performance through bull, bear and sideways markets. Risk-adjusted returns matter more than absolute returns.
Key questionsUnderstand what you are buying.
EvaluateThe fund manager and investment team are often the biggest differentiators.
EvaluateUnderstand the economics of the PMS. A superior strategy can still disappoint investors if fees consume excess returns.
ReviewScore each PMS from 1 to 5 on every factor. The weighted total is out of 100 — a PMS scoring above 80 can be shortlisted for detailed due diligence.
| Factor | Weight |
|---|---|
| Risk Alignment | 20% |
| Investment Objective Fit | 20% |
| Growth Horizon Match | 10% |
| Investment Process | 15% |
| Market Cycle Performance | 10% |
| Portfolio Construction | 10% |
| Manager Quality | 10% |
| Cost Structure | 5% |
| Total score | 100 |