Question 1

How does Manning Asset Management do due diligence on opportunities?

Tom Gallas · Accepted Answer

Manning Asset Management follows its investment process in the selection and approval of opportunities. Firstly, Manning Asset Management considers the macro-economic environment and relevant portfolio positioning considerations. These are used to inform portfolio construction and appropriate weighting of potential suitable lenders and desirable asset characteristics. Manning Asset Management’s detailed due diligence process is then undertaken to analyse each potential lender’s operations and ensure a clear understanding of its risk profile of each lender and the underlying loans. Manning Asset Management has a proprietary 10 stage 100+ point checklist to inform its decision-making and meets with all prospective lenders’ management teams throughout this process. The final stage is the evaluation and management of the loan purchasing program.

Any decision to formally approve (or not) the lender and the debt which can be purchased is taken by Manning Asset Management’s Investment Committee.

Once purchased, the performance of the exposures within the Fund is monitored on an ongoing basis and reported to the Investment Committee. Manning Asset Management maintains ongoing dialogue with the lenders as to performance of the Fund’s exposures, as well as addressing other relevant matters, including any changes in underwriting approach, target customer base, business model and strategy. Insights from these discussions are fed back to inform the investment approach and future purchasing decisions.

Question 2

How does Manning Asset Management do due diligence on opportunities?

Tom Gallas · Accepted Answer

Manning Asset Management follows its investment process in the selection and approval of opportunities. Firstly, Manning Asset Management considers the macro-economic environment and relevant portfolio positioning considerations. These are used to inform portfolio construction and appropriate weighting of potential suitable lenders and desirable asset characteristics. Manning Asset Management’s detailed due diligence process is then undertaken to analyse each potential lender’s operations and ensure a clear understanding of its risk profile of each lender and the underlying loans. Manning Asset Management has a proprietary 10 stage 100+ point checklist to inform its decision-making and meets with all prospective lenders’ management teams throughout this process. The final stage is the evaluation and management of the loan purchasing program.

Any decision to formally approve (or not) the lender and the debt which can be purchased is taken by Manning Asset Management’s Investment Committee.

Once purchased, the performance of the exposures within the Fund is monitored on an ongoing basis and reported to the Investment Committee. Manning Asset Management maintains ongoing dialogue with the lenders as to performance of the Fund’s exposures, as well as addressing other relevant matters, including any changes in underwriting approach, target customer base, business model and strategy. Insights from these discussions are fed back to inform the investment approach and future purchasing decisions.