Investment process review and GIPS pre-verification 

Our client set out to develop a robust Strategic Asset Allocation (SAA) strategy for its investment management process.  In order to become GIPS compliant, the insurer needed to incorporate benchmark analysis together with its Asset-Liability Management approach to manage its investment portfolios for its funds. Importantly, this process needed to be standardised across the 18 regional Asia-Pacific offices, to ensure entity-level consistency to support GIPS.

What we did

We were engaged to analyse the investment portfolios, potential market indices, and then determine appropriate benchmarks to implement for their investment accounts. We were responsible for the overall project management of implementation – handling both the investment analysis process as well as the management consulting elements to push changes through all regional offices. This included:

  • Gathering investment strategy mandates
  • Evaluating benchmark options in line with strategies
  • Evaluating the proposed fit with portfolio managers
  • Agreeing upon benchmarks and obtain governance

Our impact

  • The client was able to revamp their investment process and enable a transparent approach to the assessment of their external investment managers
  • Enhanced the capital budgeting process. The Group CIO was able to better determine where the managers had shown allocation and selection skill
  • Benchmark selection for all investment strategies was completed and well documented, enabling an easier and lower-cost GIPS Pre-Verification process
  • Proper benchmark selection provided ability to add performance attribution and risk analysis reporting to middle office analytics function

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