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- Most fund managers engage in late Phase Two activity and some Phase Three activities. This involves security selection and some performance and position reporting. The problem with this approach is that many of the key decisions have already been made and the opportunities to add value to the client are greatly reduced.
- Management consultants assist the client in corporate strategy design activities but usually leave the integration of those strategies into investment policy to senior management.
- The CEO, CFO and the investment management committee are expected to perform all four activities. These executives have a variety of other responsibilities and tasks and can rarely devote the time and energy needed to design and implement an optimal investment policy.
- Large funds have staff whose job it is to perform these steps. However, most organizations with funds less than a few hundred million dollars do not have staff who are explicitly assigned to these tasks (hiring internal fund managers and installing all the systems needed to support the activity costs several million dollars).
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