This figure illustrates the filtering process that is constantly taking place as managers are identified and evaluated, then reevaluated, using the proprietary manager evaluation process developed and refined by Salomon Smith Barney's Consulting Group to identify high quality investment management firms and monitor their continuing strength. Analysts assess the academic and professional background, number of years with the firm and depth and diversity of experience for each key employee. Investment Research - Rates the quality and suitability of the firm's information and data resources used for making investment decisions. Implementation of Process - Rates how well the portfolio managers implement the firm's stated investment discipline or strategy, and how consistently they adhere to the firm's sell discipline. Business Evaluation - Rates the financial and operating strength of the firm, especially the firm's profitability and capital structure.
Analysts also rate the adequacy of facilities, administration and operational support.
Consulting Group monitors the difference in performance on a quarterly basis. Quality of Composite - Rates qualitative factors concerning the composite. The Critical Difference Consulting Group maintains regular communication with each manager in its universe. Your Financial Consultant is notified immediately of any change in rating, particularly if a change results in a manager being dropped from one of the service levels reserved for recommended managers. In establishing a rating, the Committee members consider all of the criteria included in the evaluation profile.