Investment Manager Selection


The Granzow Consulting Group of Wells Fargo Advisors utilizes a five-step process to select, monitor and assess investment managers.

Step 1: Initial Screening. After your asset allocation has been decided and our asset mix has been approved, we begin the process of selecting investment managers. We target institutional-class managers that have strong investment capabilities, consistent performance, style integrity, experienced management, favorable fee structures, and sound business practices.

Step 2: Evaluation. We perform rigorous quantitative analyses to evaluate each investment manager's past performance relative to peer groups and relevant benchmarks. We also conduct in-person and telephone interviews for further due diligence. A subset then moves to the next round for further analysis and approval.

Step 3: Analysis, Review & Selection. Selected managers will then be interviewed to evaluate their expertise, research capabilities, buy-sell discipline, and risk-management techniques. Additional qualitative analyses are conducted including a review of business practices and transparency of investment process. To make our recommended roster, we must have complete confidence that the manager makes a compelling partner for you.

Step 4: Monitoring. Once selected, ongoing monitoring is performed on each manager which includes performance benchmarking, attribution and tracking error analysis, consistency of investment style and a quarterly review.

Step 5: Assessment. Managers may be replaced due to deviation from expected investment process, loss of key personnel, a change in your objectives, style drift, or for substantial performance issues.