Successful investment management is about generating ideas about the future of financial markets. It is also about implementing these ideas in portfolios, managing risk, and satisfying investor needs. This means, defining and implementing execution capabilities aligned with your investment management business model is key to unleashing the value of your strategy.
Superior strategy is critical for creating that all-important differentiating factor between our clients’ and their competitors. Yet winning in the current highly competitive environment at the end comes down to the ability to execute upon the defined strategy more effectively than their rivals. The tougher the competition, the more effective execution is key for success.
We approach investment management from a value based perspective. A the core stands a sound business operating model focusing on five key layers
- functional and process landscape defining core activities,
- organizational and governance structure determining interactions,
- resources and capabilities supporting the execution model,
- technology and infrastructure providing the foundation for effectiveness, and
- outsourcing partners providing non-core activities
rolled-out along the whole value chain of a investment management business.
Investment process design
We have long-standing experience in designing and implementing successfull investment processes, including setting-up investment committees, developing state-of-the-art portfolio construction and risk management frameworks, up to rolling-out innovative IT portfolio management solutions. We focus on ensuring that the investment process developed is based on a sound investment philosophy and satisfies well-defined customer needs.
We believe risk management should support value creation, rather than being seen as a pure controlling tool. We have reviewed and improved numerous investment risk management frameworks, convering various asset classes, including fixed income, equities, alternative investments, and multi-asset class solutions.
Aligning the organizational structure with its functional requirements is key to thrive in today’s markets. We help our clients in adjusting their organizational and governance structure in the context of a holistic operating model supporting their value proposition. A key focus is put on finding the optimal balance between efficiency and effectiveness.
Business process optimization
Success in business process optimization lies in understanding the relationship between costs and value creation. Using our value based process optimization approach we help our clients improve efficiency as well as effectiveness of their business processes. We focus on reducing costs in those areas that do not add value and leverage those that do.
Successfull pricing strategies should be based on the value perceived by the clients. Often clients define the unit of value differently than the investment managers. This must be taken into account to ensure that pricing strategies are competitive and provide a win-win situation for both the client and the investment manager.
Our experience has shown that having a sound technology architecture in place is key to support today’s investment management business. We support our clients in developing their forward-looking technology platform separating business requirements from technology aspects. We believe optimal results are achieved by encapsulating complexity and remaining flexible enough for change.
We help our clients
- ensure consistency of their performance over time, resulting in reinforced clients trust and increased revenues
- align their processes with their fundamental beliefs, strengthening their unique selling proposition through delivering upon it
- implement risk management capabilities that support their business model at reasonable costs
- increase their business process efficiency, allowing to reduce costs without scarifying quality or increasing operational risks
- improve their profit margin by aligning your organization with the value created
- assure that investment in technology provide a positive return on investment after capital costs
Positive Alpha Generation: Designing Sound Investment Processes
Successful investing is about generating ideas on the future of financial markets. But it is also about implementing these ideas in portfolios, managing risk, and satisfying investor needs. Dr. Claude Diderich presents in his book called Positive Alpha Generation: Designing Sound Investment Processes, published by John Wiley & Sons., tools and techniques to develop investment processes to allow the successful transfer of investment ideas into real performance, that is, positive alpha. The book explains the underlying theoretical concepts and describes how they can be applied in practice. A key focus is put on illustrative real world examples.