Separating investment portfolio reporting from managing the investment portfolio. This discusses the merits of why managing investments and reporting on them independent of each other is a better alternative to managers self-reporting. Do you trust the fox to tell you how many chickens are in the coop or do you verify it?
A community college foundation engaged the firm's services. We discovered an unregistered investment manager. The firm demonstrated through its financial metrics an investment manager consistently performed among the bottom 10% of its peers for 20 consecutive quarters; the manager was replaced.