Prima Capital Director of Research Nathan Behan and his team of analysts–Pat Flynn and Rush Harvey, Large Cap; Matt Zimmer, Mid Cap and Fixed Income; and Clark Whitten, Small Cap and International–use PrimaGuide data on the separately managed account universe, along with their quantitative and qualitative assessments, to select a short list of SMAs that are candidates for the annual awards.
As a first pass, the SMAs need to have $200 million or more in assets; the lead manager must have three years or more in that post; the product should be widely available; and it needs an above average score in four of the following five PrimaGuide criteria–
Performance: long-term, consistent outperformance against benchmarks and on a risk-adjusted basis;
Tax efficiency: attention to turnover, holding period, year-end tax harvesting;
Client service: access to investment professionals, communication with clients, account customizations and restrictions;
People and process: the investment process as well as the experience, track record, and number of professionals working on the strategy;
Firm: ownership structure including employee or professional ownership of firm equity, product distribution base, and overall assets under management.
The short list of candidates is then presented to the SMA awards committee which makes the final selection.