Pensions and Retirement Training Course on Manager Selection and Due Diligence
Master Pensions Retirement Training with expert training. 10 Days course with certification. Comprehensive training program. Online & in-person. Enroll now!
Pensions And Retirement Courses10 DaysCertificate Included
Duration
10 Days
Mode
Online & Physical
Certificate
Included
Language
English
Course Overview
This course provides pension fund trustees, investment officers, and analysts with a detailed framework for selecting, evaluating, and monitoring external fund managers. Participants will explore the full lifecycle of manager selection — from defining investment mandates and screening candidates, to conducting operational and compliance due diligence, performance evaluation, and ongoing oversight. The course emphasizes governance best practices, fiduciary responsibilities, and risk mitigation in outsourced investment management, enabling participants to make informed, accountable decisions aligned with pension fund objectives.
Secure enrollment • Professional certificate included
Learning Objectives
By the end of this course, participants will be able to:
Understand the strategic role of manager selection in pension fund performance.
Design a robust process for sourcing, screening, and appointing external managers.
Develop comprehensive investment mandates and selection criteria.
Conduct both qualitative and quantitative assessments of managers.
Evaluate investment styles, performance consistency, and risk-adjusted returns.
Perform operational, compliance, and governance due diligence.
Understand legal and contractual considerations in manager appointments.
Establish performance benchmarks and monitoring frameworks.
Identify red flags and manage underperforming manager relationships.
Build a sustainable governance model for ongoing manager oversight and reporting
Course Content
Module 1: Introduction to Manager Selection in Pension Funds The importance of external management in pension fund strategy Internal vs. external management models Role of manager selection in diversification and performance enhancement Governance and fiduciary perspectives on outsourcing investments Case study: Evolution of manager selection practices in institutional funds Module 2: Designing the Manager Selection Framework Steps in developing a structured manager selection process Strategic objectives and alignment with investment policy statements (IPS) Defining selection philosophy, governance, and decision rights Establishing roles of trustees, consultants, and internal teams Example: Creating a governance model for manager selection and oversight Module 3: Defining Investment Mandates and Criteria Developing detailed investment mandates (objectives, benchmarks, constraints) Asset class specialization: equity, fixed income, alternatives, multi-asset, etc. Active vs. passive management considerations Risk tolerance, style consistency, and diversification objectives Workshop: Drafting a pension fund investment mandate document Module 4: Manager Screening and Shortlisting Sources of potential managers (consultant databases, RFPs, peer recommendations) Initial screening: size, experience, track record, team stability Quantitative and qualitative metrics for shortlisting Role of technology and data platforms in screening managers Case study: Screening process for emerging market equity managers Module 5: Quantitative Performance Analysis Performance measurement techniques and benchmarking Absolute vs. relative returns and peer comparisons Risk-adjusted performance metrics (Sharpe ratio, Information ratio, alpha, beta) Performance consistency and style analysis Attribution analysis: separating skill from market exposure Workshop: Evaluating historical manager performance using sample data
Module 6: Qualitative and Organizational Assessment Assessing investment philosophy and process Evaluating team structure, decision-making, and succession planning Corporate governance, ownership, and culture Evaluating research, technology, and infrastructure support Identifying behavioral biases and style drift risks Role play: Conducting a qualitative interview with a prospective manager Module 7: Operational and Compliance Due Diligence Overview of operational risk in asset management Internal controls, trading practices, and operational resilience Compliance with regulatory standards and fiduciary obligations Reviewing legal, custodial, and counterparty arrangements ESG and responsible investment due diligence Practical session: Building an operational due diligence checklist Module 8: Legal, Contractual, and Fee Considerations Key components of investment management agreements (IMAs) Fiduciary clauses, termination rights, and performance-based fees Understanding fee structures: management vs. incentive fees Negotiation strategies and transparency best practices Legal risk mitigation and documentation standards Case study: Comparing fee structures and contractual terms across managers Module 9: Manager Monitoring and Performance Evaluation Ongoing oversight: quantitative and qualitative monitoring Establishing performance benchmarks and review cycles Early warning indicators and escalation processes Managing underperformance and deciding on termination Reporting templates and dashboards for board communication Workshop: Developing a manager monitoring scorecard Module 10: Governance, Transparency, and Best Practices Governance principles for manager selection and monitoring Trustee training and capacity-building for investment oversight Integrating manager selection into overall investment governance framework Role of independent consultants and fiduciary managers Global best practices and regulatory guidance Capstone project: Designing a complete manager selection and due diligence policy for a pension fund
Who Should Attend
Pension fund trustees, investment officers, asset allocators, portfolio analysts, compliance managers, risk officers, consultants, and fiduciary managers involved in external manager selection, evaluation, and monitoring.
