How do you determine how much to allocate to each manager? Do you change the percentages?
Typically the allocations are equal. However, our desire to limit small-cap exposure at the overall fund level may lead us to allocate less to dedicated small-cap managers in certain funds. And our desire to maintain a style-neutral portfolio in certain funds may also lead the allocations to specific sub-advisors to differ.
Generally, the target allocation at the time each fund is launched is intended to be permanent. Although we do not actively manage the allocations, we have made changes to maintain the fund’s style neutrality after making a manager change.