How did my investment process perform last year? Why was I ahead of behind my competitors? Where do I actually stand with my investment capabilities? And what could I improve? If these are questions you ask yourself, it may be time to review your investment process and benchmark its maturity to competitors. Our investment process maturity review solution offers you just that, a cardiogram of your investment management business. It allows you to gain a holistic view of the maturity of your investment process along five major capability dimensions and derive prioritized initiatives that will have a lasting impact on the success of your organization.
A key driver for success, and thus, value creation of any wealth or asset manager is his investment process. Only through sound investment capabilities can the skills to forecast financial markets be transferred into investment performance. This requires portfolios to be constructed in such a way that the impact of any loss stemming from a risk materializing is within the expected boundaries.
Based on over 17 years of experience with designing investment processes, we have developed a unique framework which allows to characterize the maturity of your investment process, that is, your value creating capabilities, along five competencies and five dimensions.
|1. Investment philosophy||a. Business process|
|2. Market forecasting capabilities||b. People skills|
|3. Risk management approach||c. Governance structure|
|4. Portfolio construction algorithm||d. Partners and suppliers|
|5. Communication skills||e. Tools and technology|
Based on this review, we support you in defining your target investment management maturity state aligned with you product or service promises. Through prioritized initiatives transforming your organization’s investment management capabilities, we increase the value of your investment solutions, your clients, and at the end your organization. Our collaborative design thinking based approach assures early buy in and know-how transfer ensuring that the changes developed in this engagement can be successfully implemented and will have a lasting impact on the success of your organization.
- Observing – We start by analyzing the characteristics of your current investment management capabilities along five key dimensions and determine its maturity. We observe (first phase of our design thinking approach) through a standardized set of questions combined with customized interviews and process documentation reviews. Depending on the complexity of your investment approach and your availability, the observing phase will take between one and four weeks of time.
- Learning – During the second phase, the learning phase, we derive your investment management capabilities and compare their maturity levels to those of your competitors. Depending on the gained insights, we may relapse to the observe phase. The learning phase usually takes between one and two weeks.
- Prototyping and validating – Through multiple workshops we jointly define your target or desired investment management maturity state. Note that it is not necessary to be world class leader in all capabilities and along all dimensions. We validate the resulting maturity state through interviewing a broad spectrum of stakeholders, both internal and external. Finally, we derive an opportunity landscape and develop a prioritized roadmap transforming your current capabilities to achieve the targeted maturity level. Depending on the number of iterations required, the prototyping and validating phase, may take between two and ten weeks, sometimes even longer, depending on the validation timeline.
The benefits of our investment process maturity review for you are twofold:
- First, we offer you a holistic review of your current investment management capabilities and compare it to those of competitors and best practice.
- Second, based on your target investment process maturity level, we jointly develop and prioritize initiatives that will enhance the value generating capabilities of your investment process for both your organization and your clients
In addition, our collaborative design thinking approach assures early buy in and know-how transfer ensuring that the changes developed in this engagement can be successfully implemented and will have a lasting impact on the success of your organization.