With some €900m in external managers funds and overall €23bn AUM, Caixagest is Portugal’s largest asset manager and is part of state-owned Caixa Geral de Depósitos(CGD).
Cristina Brízido, head of Investments, leads the fund selection team at Caixagest in Portugal, which serves the broadly diversified client base of its parent bank.
Brízido and her team mainly seek out actively managed funds and, to a lesser degree, tracker funds. A range of sources are used to achieve the selection targets; platforms and databases to perform detailed performance and risk analysis, and a wide network of contacts in the industry, as well as conferences and events.
“We have an approved list of managers for each asset class that we review on a regular basis, although we closely monitor the evolution of their peer group as well as the launch of new funds,” Brízido explains.
SELECTION PROCESS AND TRENDS SPOTTED
The selection starts with a quantitative analysis of the manager’s investment universe, which aims at studying the performance and risk consistency of the fund over time.
The results of the quantitative analysis is typically measured across two timeframes, either on a yearly or accumulated basis. Preference is given to funds with at least five years of history and ranked in the 1st and 2nd quartiles for the different periods analysed according to risk and return indicators.
“The quantitative analysis is then complemented with a qualitative approach applied to the resulting shortlist of managers, who are required to provide detailed information on relevant items such as structure of the investment team, investment process and quality of reporting.
“The answer to each of the referred criteria will be evaluated on a numeric scale and transposed to a final scorecard that also includes the quantitative analysis results.
“This final scorecard is the last phase of the fund selection process and aims to contain in a snapshot all the information obtained throughout the process,” Brízido explains.