Asset Class Business issue
Portfolio review and manager selection
Prompted by an underperforming
Japan equity manager, our client
wanted to take the opportunity to
re-examine their entire internally
and externally managed equity
portfolio. The aim was to identify
the optimum asset allocation for
their investment objectives, while
determining the best way to deal
with the underperforming manager.
Role Value added
bfinance took a two-stage approach, the first of which was a detailed analysis of the equity positions allowing the identification of all the risk and return characteristics of the portfolio. Both backward and forward looking factors were put into play, the results leading to concrete improvements for the investor to implement at their discretion. The second stage involved carrying out a competitive tender for Asia and Japan equity asset managers on behalf of our client.
bfinance’s co-operation with this major Nordic institution was two-fold. We firstly supported them in an advisory capacity with their equity asset allocation and portfolio construction. We then worked closely with their investment team to identify and select the most suitable managers to implement the agreed changes.
Analytical expertise and proprietary models allowing high level portfolio audits based on client requirements. Comprehensive manager selection encompassing the whole available universe of managers. The separation of the two stages of the project to mitigate any potential conflicts of interest.