11 Dec 2020

ARP - DDQ for Broker Dealer Products

DDQ for investors to use when assessing broker-dealer ARP products

Alternative Risk Premia (or factor-based) strategies invests based on well understood, and academically documented, underlying factors. These  factors may explain and influence an asset’s risk and/or performance as building blocks for portfolio diversification. When institutional investors access this strategy via broker-dealer products, rather than managed funds, a different type of due diligence is necessary.

This DDQ provides a list of questions that institutional investors and asset managers should ask when conducting due diligence on broker-dealer products.