1. UK University
Scope
- Review the investment manager the university had selected for a £100m mandate.
How we did it
- Completed a process of robust due diligence including interviews with the university to understand the challenges
- Conducted a series of interviews with the investment manager to understand the nature and effectiveness of the process
- Performed quantitative and qualitative analysis on the investment manager
Outcome
- Following our report, the university decided to lower the amount to be allocated to the manager to £50m in the first year.
- The university will then re-assess the suitability of committing further capital thereafter, based on our assessment of performance, activity and service standards.
2. International Family Investment Company
Scope
- Client is a Family Investment Company established to hold £70m, representing the family assets of a leading hedge fund manager.
- Assisted with identifying suitable global multi-asset investment managers to supplement the list of candidates identified by the client.
- Candidates needed to have market leading coverage and capabilities in Alternative asset classes.
How we did it
- Provided independent input into the manager selection process, including full due diligence
- Presented a balanced representation of each manager’s strengths relative to bespoke criteria
Outcome
- Client selected an investment manager they had not originally considered
- Our work resulted in material changes in approach.
- Client saved considerable time, administration and £30,000 p.a. in management fees through effective fee negotiations.
3. Family Trust
Scope
- Review the strategy and performance of existing four portfolios totalling $65m
How we did it
- Highlighted significant underperformance relative to both objectives and a peer group of similar investors
- Identified inefficiencies in strategy and governance arrangements
- Agreed a more appropriate investment mandate and clearly defined roles and responsibilities, including increased accountability for investment managers.
Outcome
- More appropriate investment mandate
- Improved fee transparency and reduced costs incurred by $50,000 per annum
4. Trusted advisor to the CEO / Executive team
Scope
- Acting as direct advisor to General Manager and CIO of a large foundation on investment related matters
- Regular attendance to Investment Committee meetings
How we did it
- Advice on asset allocation decisions, risk management and reporting
- Deliver second opinion on advice from other specialist consultants, eg on alternative investments
- Available for in-house asset management team for regular challenge, second opinion and ideas exchange
- Acted as ‘sounding board’ for CIO
Outcome
- Provided independent advice and challenge without additional headcount for the executive team
- Added value to the organisation by challenging decisions and supporting them in choosing the best propositions at an attractive cost
- Collaborated thanks to regular calls and monthly on-site attendance of Investment Committee meetings
- Broadened and strengthened the skill set of the in-house team with extensive investment management expertise
5. Creation of a robust decision-making framework
Scope
- Create Investment Governance framework
- Establish an Investment Committee
How we did it
- Draft of Mission Statement, including high level objectives in terms of risk and return
- Define and document client-specific investment beliefs
- Draft of Statement of Investment Principles (SIP), outlining policies and principles that guide decision making
- Source and select appropriate internal and external Investment Committee members
Outcome
- Easier to set priorities, manage information and process options/advice
- Improved management and planning of limited resources and time
- Effective and efficient decision making, clear responsibilities and delegations
- Improved monitoring and oversight of progress on roadmap, implementation and actions
6. Improve investment efficiency of a diversified portfolio
Scope
- Increase investment efficiency by broadening the investment opportunity appropriate for the client
- Optimise allocation between asset classes and types of risks
- Assess medium and long-term economic and capital markets outlook
How we did it
- Analysis of risk-return characteristics of existing portfolios including exposures to risk factors
- Construction of efficient frontier based on opportunity set, asset assumptions and portfolio constraints/objectives
- Define a set of alternative allocations to existing one
- Select between active and passive approaches to implementation
Outcome
- Decision of Investment Committee and Board on a more efficient asset allocation
- Better alignment of portfolio characteristics, funds objectives and constraints
- Portfolio designed to withstand an estimated tolerance to short-term risks
- Optimal spending of investment budget (risk and fees) and management of costs
Marcus Porter
