Manager monitoring ensures adherence to investment guidelines from "summary" of Institutional Investment Management by Frank J. Fabozzi
Manager monitoring is a critical function in institutional investment management. This process involves the continuous oversight and evaluation of investment managers to ensure they are following established investment guidelines. By monitoring managers, institutional investors can ensure that their investments align with their overall investment objectives and risk tolerance levels. Adherence to investment guidelines is essential for achieving the desired investment outcomes. Without proper monitoring, investment managers may deviate from the agreed-upon guidelines, leading to potential risks and losses for the institutional investor. Therefore, manager monitoring serves as a safeguard against unwanted deviations and helps maintain the integrity of the investment strategy. Through manager monitoring, institutional inv...
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