Investment

We provide expert, impartial guidance on important investment matters.

We draw on the resources and research of the PwC global network to provide advice on all stages of the investment process, from governance and strategy through to specialist implementation and reporting.
Our clients include some of the world's wealthiest companies, individuals, trusts, pension funds, family offices and sovereign wealth funds.
Our team draws on a diverse range of professionals, including investment consultants, asset managers and financial advisers. Many of our specialists hold Chartered Financial Analyst (CFA), Chartered Financial Planner or Chartered Accountant qualifications. Our services focus on adding tangible value to our clients.

Case studies

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.

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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.

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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

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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

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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

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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

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Contact us

Marcus Porter
Director, PwC United Kingdom
Tel: +44 (0)20 7804 9013
Email

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