- Transactional compliance focuses on individual transactions, while portfolio compliance considers what is best for a client's overall portfolio in light of their goals.
- Strategic compliance aims to integrate compliance vertically throughout the entire investment process, from establishing a client's preferences upfront to ongoing portfolio monitoring.
- This allows compliance to guide the investment process from the beginning and ensures a client's portfolio continuously aligns with their preferences. It also aims to simultaneously meet organizational, advisor, and client needs.
As the methodologies for IFRS 9 Implementation are still evolving, many banks are in the process of developing a roadmap towards implementation and are still evaluating methodologies that are likely to conform to the principles of proportionality and materiality. To this end, Banks being advised are to develop a Target Operating Model (TOM) design, which seeks to identify and document the work program required to meet IFRS 9 requirements on Impairment modelling and ECL estimation.
In the backdrop of the buzz that IFRS-9 has generated in the banking industry, Aptivaa is pleased to launch a series of articles providing our perspective on various issues highlighted by our esteemed clients during interactions in the recent months. First in the series is our take on the latest BCBS paper which requires ‘high quality’, ‘robust’ & ‘consistent’ implementation of Expected Credit Loss (ECL) framework for all internationally active banks.
Key highlights from BCBS guidance are:
§ Banks should consider the principle of proportionality and materiality while finalizing the methodology for ECL estimation
§ BCBS allows the immediate reversal of allowance in case of credit quality improvement, recognising that ECL accounting frameworks are symmetrical
§ Limited use of IFRS 9 practical expedients such as, more than 30 days past due, low credit risk exemption & information set
§ Inclusion of forward looking information and macroeconomic forecasts to the historical information in the ECL estimation process
§ Requirement of robust policies and procedures for model governance and validation which is in line with regulatory requirements for Basel II IRB purposes
Please find enclosed the white paper, which provides in-depth details of the key aspects discussed by the Basel Committee and our view on the same.
Article, published on IJOnline, highlighting the importance of choosing the right model auditor, the risks of de-scoping the model audit, and how Navigant Consulting\'s is different and less risky.
How to Use Machine Learning in Clinical Research Right NowMMS Holdings Inc.
To watch this webinar, please visit: https://bit.ly/3yUm5pw
In machine learning, there are usually one of two distinct objectives: inference or prediction. In analyses involving clinical trial data and/or real-world data, a machine learning solution can be used by data scientists to detect patterns that conventional analysis and statistical methods cannot. Thus, a machine learning practitioner can help to infer which subgroups that respond, either particularly well or poorly, to a treatment. Similarly, machine learning algorithms can be used to predict a discrete or time-to-event outcome. When knowledge increases of subgroups of interest and on outcomes before they occur, the impact on patient care and clinical research is very powerful.
In this Expert Insights webinar, attendees will learn:
• Why data science and the use of machine learning is essential to pharmaceutical, biotech, and medical device organizations
• How to use machine learning to understand outcomes before they occur
• Practical approaches for inference or prediction through machine learning
• Metrics to evaluate the performance of predictions made
Possibilities for the future of machine learning in clinical research
Bringing Experts Into the Fold of Litigation Management_ CLM 2014Krista Fowler Acu
This document discusses bringing experts into the fold of litigation management by treating them more like attorneys than vendors. It notes that experts represent a significant cost but current litigation guidelines say little about expert retention and handling. Implementing billing guidelines for experts could improve communication, manage costs, and increase cost predictability and budget accuracy. However, any guidelines would need to be crafted carefully to avoid appearing to influence expert opinions or being discoverable in litigation. The document explores problems from the perspectives of attorneys, clients, and experts and proposes goals of improved communication, cost management, and requiring expert input on budgets.
The document discusses how portfolio management in insurance has traditionally been slow, backward-looking, and has not changed much over the last 30 years. It argues that portfolio management needs to evolve to incorporate new analyses using new data sources and analytics tools to better understand performance and act more quickly. High performing insurance carriers of the future will use real-time data, advanced analytics, and fast, integrated processes to gain insights and make proactive decisions to improve underwriting profitability.
Bid to Win workshop for Seedbed - October 2015Matt Spry
If your business is supplying services or products to other organisations, and you want to grow, it is almost certain that you will have to navigate the minefield of tendering for new work. When done well successful bidding can help to scale your financial performance and impact quickly, but done badly and you risk wasting huge amounts of time and money.
The Bid to Win masterclass will give you:
- an introduction to bidding
- key principles for bidding to win
- an approach to bidding that can be applied to any sector or opportunity - the bid canvas
The aim of the session was to introduce attendees to a flexible and powerful approach to bidding that will keep your bids focused on what really matters to the buyer, whilst helping to manage the risks inherent in the tendering process.
As the methodologies for IFRS 9 Implementation are still evolving, many banks are in the process of developing a roadmap towards implementation and are still evaluating methodologies that are likely to conform to the principles of proportionality and materiality. To this end, Banks being advised are to develop a Target Operating Model (TOM) design, which seeks to identify and document the work program required to meet IFRS 9 requirements on Impairment modelling and ECL estimation.
In the backdrop of the buzz that IFRS-9 has generated in the banking industry, Aptivaa is pleased to launch a series of articles providing our perspective on various issues highlighted by our esteemed clients during interactions in the recent months. First in the series is our take on the latest BCBS paper which requires ‘high quality’, ‘robust’ & ‘consistent’ implementation of Expected Credit Loss (ECL) framework for all internationally active banks.
Key highlights from BCBS guidance are:
§ Banks should consider the principle of proportionality and materiality while finalizing the methodology for ECL estimation
§ BCBS allows the immediate reversal of allowance in case of credit quality improvement, recognising that ECL accounting frameworks are symmetrical
§ Limited use of IFRS 9 practical expedients such as, more than 30 days past due, low credit risk exemption & information set
§ Inclusion of forward looking information and macroeconomic forecasts to the historical information in the ECL estimation process
§ Requirement of robust policies and procedures for model governance and validation which is in line with regulatory requirements for Basel II IRB purposes
Please find enclosed the white paper, which provides in-depth details of the key aspects discussed by the Basel Committee and our view on the same.
Article, published on IJOnline, highlighting the importance of choosing the right model auditor, the risks of de-scoping the model audit, and how Navigant Consulting\'s is different and less risky.
How to Use Machine Learning in Clinical Research Right NowMMS Holdings Inc.
To watch this webinar, please visit: https://bit.ly/3yUm5pw
In machine learning, there are usually one of two distinct objectives: inference or prediction. In analyses involving clinical trial data and/or real-world data, a machine learning solution can be used by data scientists to detect patterns that conventional analysis and statistical methods cannot. Thus, a machine learning practitioner can help to infer which subgroups that respond, either particularly well or poorly, to a treatment. Similarly, machine learning algorithms can be used to predict a discrete or time-to-event outcome. When knowledge increases of subgroups of interest and on outcomes before they occur, the impact on patient care and clinical research is very powerful.
In this Expert Insights webinar, attendees will learn:
• Why data science and the use of machine learning is essential to pharmaceutical, biotech, and medical device organizations
• How to use machine learning to understand outcomes before they occur
• Practical approaches for inference or prediction through machine learning
• Metrics to evaluate the performance of predictions made
Possibilities for the future of machine learning in clinical research
Bringing Experts Into the Fold of Litigation Management_ CLM 2014Krista Fowler Acu
This document discusses bringing experts into the fold of litigation management by treating them more like attorneys than vendors. It notes that experts represent a significant cost but current litigation guidelines say little about expert retention and handling. Implementing billing guidelines for experts could improve communication, manage costs, and increase cost predictability and budget accuracy. However, any guidelines would need to be crafted carefully to avoid appearing to influence expert opinions or being discoverable in litigation. The document explores problems from the perspectives of attorneys, clients, and experts and proposes goals of improved communication, cost management, and requiring expert input on budgets.
The document discusses how portfolio management in insurance has traditionally been slow, backward-looking, and has not changed much over the last 30 years. It argues that portfolio management needs to evolve to incorporate new analyses using new data sources and analytics tools to better understand performance and act more quickly. High performing insurance carriers of the future will use real-time data, advanced analytics, and fast, integrated processes to gain insights and make proactive decisions to improve underwriting profitability.
Bid to Win workshop for Seedbed - October 2015Matt Spry
If your business is supplying services or products to other organisations, and you want to grow, it is almost certain that you will have to navigate the minefield of tendering for new work. When done well successful bidding can help to scale your financial performance and impact quickly, but done badly and you risk wasting huge amounts of time and money.
The Bid to Win masterclass will give you:
- an introduction to bidding
- key principles for bidding to win
- an approach to bidding that can be applied to any sector or opportunity - the bid canvas
The aim of the session was to introduce attendees to a flexible and powerful approach to bidding that will keep your bids focused on what really matters to the buyer, whilst helping to manage the risks inherent in the tendering process.
Social Investing: Opportunity to Address Confidence Gap - Black Swan PartnersBlack Swan Partners
There is an investment ‘confidence gap’ for both experienced investors unwilling to pay for advice upfront and for novice investors who don’t have the understanding of financial markets, or the confidence in their understanding, to invest their savings. As a result, many investors are holding too much cash, and risking their financial future as a result.
The Alpha Cooperative, LLC (“TAC”) has developed a customized managed account platform with open architecture for the investor looking to add additional emerging manager exposure to their portfolio’s. TAC can act as the Investment Manager and fiduciary to the managed account platform. TAC will provide risk management, reporting and performance metrics across all the sub managers
Mass Portfolio Customisation and the Unique Investor - Financial SimplicityStuart Holdsworth
The attraction of mass customisation had its genesis in the fast moving consumer goods sector: now, its potential extends seamlessly to global wealth management. After all, why should consumers not be able to manage investment portfolios via their iTunes account?
Why Business ReModelling Is Essential In Wealth Management - Financial Simpli...Stuart Holdsworth
The key aspect of change in the wealth management industry is that change, in itself, is not new. However, the transition to a new paradigm is now fundamentally different in two key aspects: pace and scope. Just what is changing and what will happen to anyone who cannot keep the pace?
This presentation provides an overview of the Managed Accounts industry in Australia, as well as the key features & benefits of SMAs/IMAs for financial intermediaries and investors.
IFA report 2014 - Trends and Highlights by Designit Designit
Designers from our Munich office have been to IFA 2014, the world's leading trade show for consumer electronics and home appliances. Please find here their report about the latest trends, highlights and business opportunities in the field of home appliances and consumer electronics.
This document discusses the growth potential and business models of robo-advisors. It begins by asking how big and fast the robo-advisor industry can grow in the US, what business models may be successful, and where advice is headed in the future. It then examines the size and growth projections of the robo-advisor market, outlines different business models, and explores how advanced analytics could expand the scope of automated advice over time. The document concludes that while robo-advice has significant growth potential, many questions remain around which firms and models can succeed in this evolving space.
Digital Disruption in Asset and Wealth ManagementCapgemini
The groundswell that is today impacting massively retail banking is now impacting all banking businesses. Opportunities offered by new digital technology such as Big data & analytics have not been fully explored yet by Asset & Wealth Management actors, and new technologies are mainly confined to improve shared platforms and reporting flexibility. But the turn might come soon now with the aggressive launches of Fintechs investing all parts of the banking business, including its most exclusive territories.
Asset and Wealth Management might be the next targets, facing the up-rise of new Robo-Advisors quickly gaining market
share on their devoted playground until now.
Traditional Asset and Wealth Managers should anticipate and react, building on their knowledge and assets in order to contain this new trend but this will require that they adapt and probably more globally rethink their business model, to avoid the commoditization of their activity.
The aim of this document is to present how Asset and Wealth Managers can take advantage of the digital revolution / emergence of Fintechs to become more competitive and attract more clients.
Making Analytics Actionable for Financial Institutions (Part I of III)Cognizant
This document provides an overview of making analytics actionable for financial institutions. It discusses the need for financial institutions to go beyond just gathering insights from data to explicitly enabling real-time translation of data into improvements. It proposes a framework for identifying gaps between how information is gathered, insights generated, actions enabled, and learning leveraged. This framework aims to help capture and exploit digital footprints around clients, employees, partners and competitors to drive differentiation, growth and profitability through actionable analytics.
This document discusses operational excellence in investment management firms. It provides guidance on 10 commandments for achieving operational excellence, including developing a robust legal and compliance program, building a strong team with integrity, establishing strong controls and procedures, ensuring proper separation of duties, and other operational best practices. The document emphasizes the importance of operational infrastructure and governance for protecting investors and the firm.
10 Commandments for Achieving Operational ExcellenceMitch Ackles
This white paper is intended to provide a useful framework and guide for all Investment Management Firms.
Over the past 20 years the investment management industry, and specifically hedge funds, has achieved tremendous growth. As assets under management increased, so did diversification in strategies and investments. During that time investors have become very sophisticated in their selection of investments as well as the operational due diligence process. This growth and sophistication has reinforced the critical role of operational executives, and their teams’ responsibility to effectively manage the operational infrastructure. These are the people, functions and technology that are an integral part of keeping these firms thriving.
I have been on the operational side of the hedge fund business for 23 years, holding various senior positions. The first 8 years I had the privilege of being at Tiger Management, one of the premier firms at that time. The people I worked with were brilliant, the standards were high, the positive energy was contagious, and I felt honored to be a part of it. My background includes leading Global Operations for Tiger Management and Highbridge Capital, as well as having several COO positions for emerging managers.
I’ve witnessed and participated in the evolution of the operational side of hedge funds. In the early years hedge funds launched with mainly portfolio managers and traders, and relied heavily on their prime brokers to fulfill their back office needs. As assets grew so did the investment process, and subsequently, it was imperative to start building out an “operations group” within a hedge fund. Expansion from U.S. to foreign investments began, as well as diversifying from only equities and bonds to now including all types of derivatives and over the counter contracts. Also happening was the addition of multiple prime brokers to meet their “shorting” requirements. All these changes were occurring simultaneously.
The investment side of the business was growing so rapidly that the operations side had to quickly adapt to meet the challenge. As this expansion was happening the prime brokers were not as equipped to take on these new investments since their early model was built principally to support equity investments. Additionally, with hedge funds now engaging with multiple prime brokers, supporting them was even more challenging. Therefore, hedge fund operations, especially the larger firms, were taking back some of these functions from prime brokers to manage them more closely.
Lincoln crowne merger & acquisition deal filters 2011 noteNick Assef
High level paper authored by Nicholas Assef on the strategic approach one should adopt in establishing 'deal filters' to prioritise merger & Acquisition targets
The document discusses how C-level executives can collaborate to drive business transformation in response to changing market conditions. It presents a business value model framework with six elements and describes how the CEO, CFO, COO, CIO/CSO, CMO, and CTO can each take responsibility for certain elements as "brokers" and "agents." It also discusses how innovations can impact different elements of the model, requiring synchronization across the C-team to adapt the business approach.
C-level Innovation as Collaborative Business TransformationMalcolm Ryder
Executive adoption of innovations is an outcome of forming and pursuing a group ambition, but the group must be executives themselves, and it could also take a group of innovations to get any of them adopted.
This document outlines principles for investment reporting developed by CFA Institute. It aims to provide guidance for complete, consistent and transparent reporting to clients by financial institutions. The principles are intended to address gaps and lack of transparency in current industry practices. They seek to improve understanding between report preparers and users by facilitating dialogue on report content and format. The five key principles stress the importance of communication between preparers and users to ensure reports meet user needs and expectations. Adopting these principles could help rebuild trust between clients and financial firms and help harmonize reporting standards globally.
Modern Portfolio Theory (MPT) was developed in the 1950s and remains the standard approach used today. However, MPT makes unrealistic assumptions. HighTower|Scottsdale has developed an advanced "Liability Derived Intelligence" (LDintelligence) methodology that builds on MPT but addresses its limitations. LDintelligence begins by calculating each investor's "Liability Derived Index" based on their unique financial goals and risk tolerance. It then constructs customized portfolios aimed at achieving this target return while managing downside risk.
Emerging Differentiators of a Successful Wealtlh Management PlatformCognizant
Changes in the wealth management industry are driving the need for a flexible, scalable platform that enables wealth managers to differentiate their services and profitably serve the mass affluent and mass markets.
Across the corporate landscape IT functions are completing their transformation to a service-orientation. Slowly but surely, “governance” has become a core mission, if not yet the core competency, of the IT organization. Governance involves many fronts and addresses many levels – there is architectural governance, IT finance and projects governance, and of course, supplier governance. All call for new skills and new structures. WGroup collectively brings decades of hands-on experience in IT supplier management to assist our clients with the multi-supplier challenge – from building the governance structures to defining sourcing strategies to facilitating contract reviews to transition management. This states how WGroup would implement a multi-supplier governance model successfully.
Social Investing: Opportunity to Address Confidence Gap - Black Swan PartnersBlack Swan Partners
There is an investment ‘confidence gap’ for both experienced investors unwilling to pay for advice upfront and for novice investors who don’t have the understanding of financial markets, or the confidence in their understanding, to invest their savings. As a result, many investors are holding too much cash, and risking their financial future as a result.
The Alpha Cooperative, LLC (“TAC”) has developed a customized managed account platform with open architecture for the investor looking to add additional emerging manager exposure to their portfolio’s. TAC can act as the Investment Manager and fiduciary to the managed account platform. TAC will provide risk management, reporting and performance metrics across all the sub managers
Mass Portfolio Customisation and the Unique Investor - Financial SimplicityStuart Holdsworth
The attraction of mass customisation had its genesis in the fast moving consumer goods sector: now, its potential extends seamlessly to global wealth management. After all, why should consumers not be able to manage investment portfolios via their iTunes account?
Why Business ReModelling Is Essential In Wealth Management - Financial Simpli...Stuart Holdsworth
The key aspect of change in the wealth management industry is that change, in itself, is not new. However, the transition to a new paradigm is now fundamentally different in two key aspects: pace and scope. Just what is changing and what will happen to anyone who cannot keep the pace?
This presentation provides an overview of the Managed Accounts industry in Australia, as well as the key features & benefits of SMAs/IMAs for financial intermediaries and investors.
IFA report 2014 - Trends and Highlights by Designit Designit
Designers from our Munich office have been to IFA 2014, the world's leading trade show for consumer electronics and home appliances. Please find here their report about the latest trends, highlights and business opportunities in the field of home appliances and consumer electronics.
This document discusses the growth potential and business models of robo-advisors. It begins by asking how big and fast the robo-advisor industry can grow in the US, what business models may be successful, and where advice is headed in the future. It then examines the size and growth projections of the robo-advisor market, outlines different business models, and explores how advanced analytics could expand the scope of automated advice over time. The document concludes that while robo-advice has significant growth potential, many questions remain around which firms and models can succeed in this evolving space.
Digital Disruption in Asset and Wealth ManagementCapgemini
The groundswell that is today impacting massively retail banking is now impacting all banking businesses. Opportunities offered by new digital technology such as Big data & analytics have not been fully explored yet by Asset & Wealth Management actors, and new technologies are mainly confined to improve shared platforms and reporting flexibility. But the turn might come soon now with the aggressive launches of Fintechs investing all parts of the banking business, including its most exclusive territories.
Asset and Wealth Management might be the next targets, facing the up-rise of new Robo-Advisors quickly gaining market
share on their devoted playground until now.
Traditional Asset and Wealth Managers should anticipate and react, building on their knowledge and assets in order to contain this new trend but this will require that they adapt and probably more globally rethink their business model, to avoid the commoditization of their activity.
The aim of this document is to present how Asset and Wealth Managers can take advantage of the digital revolution / emergence of Fintechs to become more competitive and attract more clients.
Making Analytics Actionable for Financial Institutions (Part I of III)Cognizant
This document provides an overview of making analytics actionable for financial institutions. It discusses the need for financial institutions to go beyond just gathering insights from data to explicitly enabling real-time translation of data into improvements. It proposes a framework for identifying gaps between how information is gathered, insights generated, actions enabled, and learning leveraged. This framework aims to help capture and exploit digital footprints around clients, employees, partners and competitors to drive differentiation, growth and profitability through actionable analytics.
This document discusses operational excellence in investment management firms. It provides guidance on 10 commandments for achieving operational excellence, including developing a robust legal and compliance program, building a strong team with integrity, establishing strong controls and procedures, ensuring proper separation of duties, and other operational best practices. The document emphasizes the importance of operational infrastructure and governance for protecting investors and the firm.
10 Commandments for Achieving Operational ExcellenceMitch Ackles
This white paper is intended to provide a useful framework and guide for all Investment Management Firms.
Over the past 20 years the investment management industry, and specifically hedge funds, has achieved tremendous growth. As assets under management increased, so did diversification in strategies and investments. During that time investors have become very sophisticated in their selection of investments as well as the operational due diligence process. This growth and sophistication has reinforced the critical role of operational executives, and their teams’ responsibility to effectively manage the operational infrastructure. These are the people, functions and technology that are an integral part of keeping these firms thriving.
I have been on the operational side of the hedge fund business for 23 years, holding various senior positions. The first 8 years I had the privilege of being at Tiger Management, one of the premier firms at that time. The people I worked with were brilliant, the standards were high, the positive energy was contagious, and I felt honored to be a part of it. My background includes leading Global Operations for Tiger Management and Highbridge Capital, as well as having several COO positions for emerging managers.
I’ve witnessed and participated in the evolution of the operational side of hedge funds. In the early years hedge funds launched with mainly portfolio managers and traders, and relied heavily on their prime brokers to fulfill their back office needs. As assets grew so did the investment process, and subsequently, it was imperative to start building out an “operations group” within a hedge fund. Expansion from U.S. to foreign investments began, as well as diversifying from only equities and bonds to now including all types of derivatives and over the counter contracts. Also happening was the addition of multiple prime brokers to meet their “shorting” requirements. All these changes were occurring simultaneously.
The investment side of the business was growing so rapidly that the operations side had to quickly adapt to meet the challenge. As this expansion was happening the prime brokers were not as equipped to take on these new investments since their early model was built principally to support equity investments. Additionally, with hedge funds now engaging with multiple prime brokers, supporting them was even more challenging. Therefore, hedge fund operations, especially the larger firms, were taking back some of these functions from prime brokers to manage them more closely.
Lincoln crowne merger & acquisition deal filters 2011 noteNick Assef
High level paper authored by Nicholas Assef on the strategic approach one should adopt in establishing 'deal filters' to prioritise merger & Acquisition targets
The document discusses how C-level executives can collaborate to drive business transformation in response to changing market conditions. It presents a business value model framework with six elements and describes how the CEO, CFO, COO, CIO/CSO, CMO, and CTO can each take responsibility for certain elements as "brokers" and "agents." It also discusses how innovations can impact different elements of the model, requiring synchronization across the C-team to adapt the business approach.
C-level Innovation as Collaborative Business TransformationMalcolm Ryder
Executive adoption of innovations is an outcome of forming and pursuing a group ambition, but the group must be executives themselves, and it could also take a group of innovations to get any of them adopted.
This document outlines principles for investment reporting developed by CFA Institute. It aims to provide guidance for complete, consistent and transparent reporting to clients by financial institutions. The principles are intended to address gaps and lack of transparency in current industry practices. They seek to improve understanding between report preparers and users by facilitating dialogue on report content and format. The five key principles stress the importance of communication between preparers and users to ensure reports meet user needs and expectations. Adopting these principles could help rebuild trust between clients and financial firms and help harmonize reporting standards globally.
Modern Portfolio Theory (MPT) was developed in the 1950s and remains the standard approach used today. However, MPT makes unrealistic assumptions. HighTower|Scottsdale has developed an advanced "Liability Derived Intelligence" (LDintelligence) methodology that builds on MPT but addresses its limitations. LDintelligence begins by calculating each investor's "Liability Derived Index" based on their unique financial goals and risk tolerance. It then constructs customized portfolios aimed at achieving this target return while managing downside risk.
Emerging Differentiators of a Successful Wealtlh Management PlatformCognizant
Changes in the wealth management industry are driving the need for a flexible, scalable platform that enables wealth managers to differentiate their services and profitably serve the mass affluent and mass markets.
Across the corporate landscape IT functions are completing their transformation to a service-orientation. Slowly but surely, “governance” has become a core mission, if not yet the core competency, of the IT organization. Governance involves many fronts and addresses many levels – there is architectural governance, IT finance and projects governance, and of course, supplier governance. All call for new skills and new structures. WGroup collectively brings decades of hands-on experience in IT supplier management to assist our clients with the multi-supplier challenge – from building the governance structures to defining sourcing strategies to facilitating contract reviews to transition management. This states how WGroup would implement a multi-supplier governance model successfully.
Importance Of Thorough Working Capital Analysistony_enlow
The document discusses the importance of working capital (WC) analysis and how accountants can add value to their clients through WC due diligence. It provides examples of how thorough WC analysis can help identify risks, improve transaction terms, and ensure sufficient funding and cash flows. Key areas covered include WC definitions in sale and purchase agreements (SPAs), normalizing WC, modeling forecasts, and opportunities to optimize WC management.
The document discusses how a $90 million hedge fund selected cloud services to simplify its investment processes and operations. It describes how the cloud-based hedge fund operating system provides real-time workflows and data access to portfolio managers, heads of trading, and operations and technology teams. This allows each role to make better informed decisions, improve relationships with investors and counterparties, and help the fund generate alpha and scale effectively.
Michael Heine has extensive experience in Australian and European financial markets. He is the Managing Director of netwealth Investments Limited, which he established after his previous company Heine Investment Management was acquired by Mercantile Mutual (now ING) in 1999 for over $115 million when it had almost $3 billion funds under management. Managed accounts provide advisers and clients the ability to invest in one or more professionally managed models with direct ownership of underlying assets, as opposed to managed funds. The benefits of managed accounts become more evident when advisers need to combine multiple models that require regular rebalancing.
- Wealth management is a growing sector focused on providing comprehensive financial advice and building long-term relationships with clients.
- 2plan is positioning itself to provide enhanced wealth management services to advisers, including a structured advice process with risk profiling and asset allocation tools to develop tailored investment strategies and recommendations.
- The goal is to differentiate 2plan advisers by offering high-quality, professional advice and ongoing support to gain new clients and better serve existing ones.
Project portfolio management (PPM) involves the logical selection and execution of projects to achieve strategic business goals. An effective PPM system identifies, analyzes, and prioritizes projects based on value. The primary benefit of PPM is that only projects aligned with strategic goals will be selected. PPM evaluates projects throughout their lifecycle to ensure continued alignment. PPM uses various tools and techniques to prioritize projects based on financial, strategic, and other organizational factors. The goal is to select a mix of projects that does not exceed resources and delivers maximum value.
Similar to Can Strategic Compliance Become and New Standard - Financial Simplicity (20)
Navigating the world of forex trading can be challenging, especially for beginners. To help you make an informed decision, we have comprehensively compared the best forex brokers in India for 2024. This article, reviewed by Top Forex Brokers Review, will cover featured award winners, the best forex brokers, featured offers, the best copy trading platforms, the best forex brokers for beginners, the best MetaTrader brokers, and recently updated reviews. We will focus on FP Markets, Black Bull, EightCap, IC Markets, and Octa.
NIMA2024 | De toegevoegde waarde van DEI en ESG in campagnes | Nathalie Lam |...BBPMedia1
Nathalie zal delen hoe DEI en ESG een fundamentele rol kunnen spelen in je merkstrategie en je de juiste aansluiting kan creëren met je doelgroep. Door middel van voorbeelden en simpele handvatten toont ze hoe dit in jouw organisatie toegepast kan worden.
Best practices for project execution and deliveryCLIVE MINCHIN
A select set of project management best practices to keep your project on-track, on-cost and aligned to scope. Many firms have don't have the necessary skills, diligence, methods and oversight of their projects; this leads to slippage, higher costs and longer timeframes. Often firms have a history of projects that simply failed to move the needle. These best practices will help your firm avoid these pitfalls but they require fortitude to apply.
Ellen Burstyn: From Detroit Dreamer to Hollywood Legend | CIO Women MagazineCIOWomenMagazine
In this article, we will dive into the extraordinary life of Ellen Burstyn, where the curtains rise on a story that's far more attractive than any script.
Industrial Tech SW: Category Renewal and CreationChristian Dahlen
Every industrial revolution has created a new set of categories and a new set of players.
Multiple new technologies have emerged, but Samsara and C3.ai are only two companies which have gone public so far.
Manufacturing startups constitute the largest pipeline share of unicorns and IPO candidates in the SF Bay Area, and software startups dominate in Germany.
The Most Inspiring Entrepreneurs to Follow in 2024.pdfthesiliconleaders
In a world where the potential of youth innovation remains vastly untouched, there emerges a guiding light in the form of Norm Goldstein, the Founder and CEO of EduNetwork Partners. His dedication to this cause has earned him recognition as a Congressional Leadership Award recipient.
Cover Story - China's Investment Leader - Dr. Alyce SUmsthrill
In World Expo 2010 Shanghai – the most visited Expo in the World History
https://www.britannica.com/event/Expo-Shanghai-2010
China’s official organizer of the Expo, CCPIT (China Council for the Promotion of International Trade https://en.ccpit.org/) has chosen Dr. Alyce Su as the Cover Person with Cover Story, in the Expo’s official magazine distributed throughout the Expo, showcasing China’s New Generation of Leaders to the World.
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IMPACT Silver is a pure silver zinc producer with over $260 million in revenue since 2008 and a large 100% owned 210km Mexico land package - 2024 catalysts includes new 14% grade zinc Plomosas mine and 20,000m of fully funded exploration drilling.
Best Competitive Marble Pricing in Dubai - ☎ 9928909666Stone Art Hub
Stone Art Hub offers the best competitive Marble Pricing in Dubai, ensuring affordability without compromising quality. With a wide range of exquisite marble options to choose from, you can enhance your spaces with elegance and sophistication. For inquiries or orders, contact us at ☎ 9928909666. Experience luxury at unbeatable prices.
Discover timeless style with the 2022 Vintage Roman Numerals Men's Ring. Crafted from premium stainless steel, this 6mm wide ring embodies elegance and durability. Perfect as a gift, it seamlessly blends classic Roman numeral detailing with modern sophistication, making it an ideal accessory for any occasion.
https://rb.gy/usj1a2
Brian Fitzsimmons on the Business Strategy and Content Flywheel of Barstool S...Neil Horowitz
On episode 272 of the Digital and Social Media Sports Podcast, Neil chatted with Brian Fitzsimmons, Director of Licensing and Business Development for Barstool Sports.
What follows is a collection of snippets from the podcast. To hear the full interview and more, check out the podcast on all podcast platforms and at www.dsmsports.net
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Part 2 Deep Dive: Navigating the 2024 Slowdownjeffkluth1
Introduction
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2. Can strategic compliance become the new standard? | May 2010 01BESTPRACTICE CLIENTSERVICE
Q. We’re starting to see a shift from “transactional” compliance to “portfolio-based
compliance” in wealth management: What does this actually mean?
SH: Before considering the implications of this shift, it’s important to establish a
lexicon of sorts as misleading terminology can bury the key points.Transactional
compliance is the utility within wealth management currently employed to
implement buying and selling decisions consistent with a firm’s highly skilled,
professional investment research.
The wealth management industry uses the transactional compliance utility in two
key ways: to ensure transaction-based consistency with in-house research views and
as a quality assurance standard (for which the Approved Product or Recommended
Research Lists are the primary tools). Financial advice offered in accordance
with an APL or recommended list forms the basis of compliance and, with that, a
quantifiable risk management discipline.
However, transactional compliance does not, and cannot, consider what is in the
best portfolio-specific interests of individual clients.This is where portfolio-based
compliance becomes important.
Q. So where does portfolio compliance come in?
SH: The investments comprising a client’s portfolio could actually be entirely
compliant with a firm research’s recommendations, or with its APL, but be
disconnected from what might be in the specific client’s long-term interests.
Potentially, one could encounter a situation in which a client has a fully compliant
portfolio from a research or Approved Product viewpoint, but the mix of securities
does not actually support the client’s highly individual, long-term goals.The potential
for strategic shortfall in the composition of a client’s portfolio is an issue of portfolio
compliance.
What we’re really talking
about is ‘cradle to grave’
compliance – vertically
integrated at all points
of the investment
management process.
A sustainable process
cannot be built around
exceptions.
‘Strategic’ and ‘dynamic’ are not adjectives one automatically associates with compliance in wealth
management. Given that the objective of compliance is, and must be, to ensure portfolio managers
do not breach prescribed investment parameters, compliance is a limiting function. In generally being
applied as a check of a transactional, or product-based, decision already made, compliance has been a
tactical tool. However, transactional and product-based compliance is now being extended into a new
paradigm of strategic compliance.With the advent of smart, flexible technology, compliance can be
moved to the front end of the investment process and applied throughout as a client-tailored overlay.
Beginning with the client’s own rules, preferences and constraints, strategic compliance is that which is
vertically integrated throughout the entire investment process. In the third instalment of our discussion
series, Stuart Holdsworth considers how strategic compliance aligns, in a way that has not been
achieved previously, organisational needs with those of the client and the wealth adviser.
3. Can strategic compliance become the new standard? | May 2010 02BESTPRACTICE CLIENTSERVICE
Investment professionals agree that no single security has long-term predictability.
You can really only get meaningful predictability from a broader, diversified pool.
Over time, investment security selection within a sector will not be a consistent area
of outperformance in portfolio management. Certainly, one gets exceptional stock
pickers but they are just that – exceptional. A sustainable process cannot be built
around exceptions.
To this end, an increasing portion of wealth management professionals are adopting
an asset allocation approach which mitigates the effect of security and region-
specific risks as an effective framework for portfolio construction.
Q. So asset allocation and portfolio compliance are synonymous?
SH: Almost. Returning to the importance of our lexicon for the moment, it would
be more accurate to say that asset allocation drives, or results in, a portfolio
compliance utility. It is important to note that this utility is complementary to that of
transactional compliance.
The combination of these two compliance utilities – simultaneously and
continuously applied – will result in a new level of client-centricity we have not seen
before. Client-centricity is largely risk and time profiled.With risk and time profiling,
this generally means working out an allocation of assets that achieve the correct
balance with a correspondingly greater level of certainty.
Q. What are the elements required for asset allocation and, resulting from it, a
portfolio compliance utility?
SH: A vital constituent in the asset allocation process is clearly a model portfolio:
However, it is important to introduce model portfolios which are actually PRE-
compliant in both their individual security selection and asset allocation. A model
portfolio can be pre-compliant at a portfolio level in its asset allocation by being
constrained to the parameters of a client-compliant asset allocation framework.To
be specific, the client’s rules, preferences and constraints are directive in the setting
of the end portfolio.
Using pre-compliant models and client-compliant overlays, portfolio rebalancing
operations will yield an immediate and transparent compliance.This is achieved
by using a continuous client-centric overlay on top of all asset allocation model
decisions.What we’re really talking about is ‘cradle to grave’ compliance – vertically
integrated at all points of the investment management process.
You score a portfolio
management Bull’s Eye
when your process starts
with your client’s highly
individual preferences
ahead of ANYother
consideration.
4. Can strategic compliance become the new standard? | May 2010 03BESTPRACTICE CLIENTSERVICE
Q. Compliance, vertically integrated at all points of the process – what does that
look like?
SH: Given that we’re all comfortable with the idea of hitting targets in investment
management, imagine a multi-level target which includes all aspects of the
investment process within your firm’s current compliance regime. From the outer
ring, you have fundamental compliance with ASIC licensee requirements; moving
in one ring, you achieve transactional compliance through research and adherence
to your firm’s recommended list or APL. You achieve portfolio-based compliance
in the next inward ring with the use of model portfolios and broad asset allocation
guidelines used as an overlay to the client’s portfolio. However, in the innermost ring
– the Bull’s Eye – the overlay is a client-specific one.
You score a portfolio management Bull’s Eye when your process starts with setting
your client’s highly individual rules, preferences and constraints in advance of any
other consideration.
This is the emergence of strategic compliance. If the research is being applied in
the specific interests of the individual client, not only is this something to keep the
license holder or regulator happy, it will be inherently good for the client.The quicker
adjustments can be made to individual portfolios consistent with robust research,
the better it will be for the client AND the firm. Strategic compliance can provide a
demonstrable, quantifiable and measurable improvement in client service.
Q. So strategic, portfolio-based compliance requires an overlay of the client’s own
individual requirements?
SH: Yes, portfolio compliance introduces a continuous application of the client’s
individual agenda over the broader investment process as an overlay.Whilst an
adviser might agree with a preset asset allocation range, this might have to be
overridden with client-specific instructions. If these instructions are applied after a
portfolio review, compliance and meeting the client’s long-term goals become time-
consuming and difficult.
As research recommendations change in volatile markets, a wealth management
practice that employs strategic compliance can take comfort that, when
checking client portfolios for compliance, the research is also being implemented
instantaneously and consistently across an entire client base. As a result, every
individual client’s needs – even though all these needs will be a little, or a lot,
different – are considered equally.
By mixing these tools
in a slightly different
way with slightly more
sophisticated technology,
we can produce a business
redefining result with
some extraordinary
implications....
5. Can strategic compliance become the new standard? | May 2010 04BESTPRACTICE CLIENTSERVICE
Q. So, clearly, we need a system which will allow a client’s overlay to be established
in advance and able to run continuously?
SH: Yes, it’s imperative to deploy technology which allows a client’s rules,
preferences and constraints to be set first: Further, it must also rebalance
automatically around the client’s pre-defined framework every time a change is
made.
To be more explicit, essentially, three functionalities are required: first, the system
must allow advisers to enter rules, preferences and constraints that clients instruct.
Second, the system must allow you to enter and adjust the asset allocations
associated with each individual client.Third, the system must allow you to input and
maintain model portfolios in all their permutations.These three capabilities need to
interact with each other not sequentially, but simultaneously in a single, continuous
process to achieve strategic compliance. Each function of the system is critical in its
own right.
However, only when they are working interdependently and simultaneously can we
achieve client-centric portfolio management which is at the centre of the target to
which I referred earlier.
Q. Strategic compliance sounds a little like alchemy.
SH:Well, to a certain degree it is.We are taking several basic processes and,
by combining them, we can produce something far greater than the sum of the
individual parts.
For example, we’re talking about fundamental tools being used right now – portfolio
modelling and compliance checking. By mixing these same tools in a slightly
different way with more sophisticated technology, we can produce a business
redefining result with some extraordinary implications. Central to the philosophy
of strategic compliance is the establishment of a clear, flexible client investment
framework.The tension and the friction that builds inside a traditional transactional
compliance model can now be overcome with a strategic approach which aligns
simultaneously the interests of the client, the wealth adviser and the business. From
a risk managed point of view, a wealth adviser can establish and maintain an asset
allocation that’s consistent with the client’s investment profile and goals. If this is
done at the outset of the client’s investment process and monitored consistently, it
reduces risk for the client, the adviser and the firm simultaneously.
Compliance should no longer be a biannual or quarterly check done ‘after the fact’ on
an investment portfolio. By accessing overall strategic compliance when the client’s
rules, preferences and constraints are being discussed as part of their overall goals,
compliance can act as a strategic guide for all suggested investments.
6. Can strategic compliance become the new standard? | May 2010 05BESTPRACTICE CLIENTSERVICE
Q. So strategic compliance requires a step beyond model portfolio and portfolio
rebalancing capability?
SH: A lot of people talk about having model portfolio capability. Model portfolio
capability is a necessary but not sufficient ingredient to achieving strategic
compliance and, by extension, client-centric service.
It’s about being able to combine the model portfolio capability with the ability to
maintain and adjust asset allocation and client specific instructions at a tactical
level.This is a very important point. It’s not about the model defining a product.
The model is just a component in the provision of a portfolio management service.
You might have multiple models for each asset allocation scenario.The relative
weightings of each asset allocation situation are determined according to the
client’s unique risk profile.
It’s not just about portfolio rebalancing and it’s not about operating within a
standard compliance framework. It’s about having them interact within a client-
centric asset allocation framework – remaining in the centre of the client’s portfolio
management target. In this way, a wealth management group using strategic
compliance can demonstrate rapid, flexible servicing of clients as well as meeting
transactional compliance obligations.
Finally, it’s important to note here that we are not simply talking about one-at- a time
tailored client overlays.We are talking about being able to apply an individualised
approach in a mass framework: Strategic compliance is also fully scalable
compliance.
Q. Can you give an example of scalable strategic compliance?
SH: If you have an allocation to Australian Equities but must, for whatever reason,
exclude a big stock in that sector, this will have significant implications for the
client’s allocation adjustments. If these adjustments are not facilitated continuously
in advance, the implication is that you are going to be scrambling with manual effort
at the end of each decision-making cycle.This is not efficient and impossible to scale
with large numbers of client portfolios.
If we are to achieve genuine best practice in client service in wealth management (eg
that which addresses the client’s individual requirements continuously), portfolio
compliance demands on-going obligation to portfolio review.With that, there is
a new level of scrutiny and, as a result, greater level of client comfort around the
portfolio.
7. Can strategic compliance become the new standard? | May 2010 06BESTPRACTICE CLIENTSERVICE
Q. So strategic compliance allows you to achieve a number of formerly competing
goals simultaneously?
SH: Compliance, client service and portfolio management are all aligned and become
the same thing. By servicing the client strategically, you understand a combination of
their asset allocation compliance and the client overlay compliance. By looking after
your clients first, you can reduce your own business risk and that of the broader
organisation. In order to be truly demonstrating that you are acting in the client’s
best interests, you have to be highly proactive in monitoring – and that means
rebalancing even within test scenarios – the client’s portfolio.The parameters of
the client’s individual investment framework may shift many times in a year, or
even in a month, either as markets change or as the client’s circumstances change.
However, strategic compliance ensures that change, and resultant rebalancing, is a
streamlined exercise.
Best practice compliance means considering the client’s rules in an ‘overlay’ process.
Best practice client service results from the deployment of a strategic compliance
standard.
Q. Somewhat paradoxically, it sounds like strategic compliance might even save
time compared to traditional, transactional compliance?
SH: This is another vital point.The process of strategic compliance checks within
defined asset allocation parameters and model portfolios can be systematised
using new technologies.Therefore, it can be performed by anyone in a fraction of
the time currently required by checking spreadsheets in a transactional compliance
environment.
You can even place the onus of compliance back to those who service the clients
if desired. Advisers can execute their own compliance checking in a continuously
strategic manner. Or, the process can be managed through a centralised group as
preferred.
Deploying a strategic compliance standard saves huge amounts of time for wealth
advisers with regular transactional compliance checks.The real shift here is that
compliance goes from being a point in time (or static) check to a continuous, dynamic
part of the portfolio management process itself.
By looking after your
clients first, you can
reduce your own business
risk and that of the
broader organization.
8. Can strategic compliance become the new standard? | May 2010 07BESTPRACTICE CLIENTSERVICE
Q. So won’t the infrastructure required to maintain such a compliance regime
stretch existing systems to breaking point?
SH: Most existing systems with a basic modelling or compliance checking capability
will definitely be over-burdened and most likely ineffective. If you look at the
current techniques embedded in portfolio management applications, they generally
support compliance focused on point of sale, transactional compliance, or product
compliance. For example, has Ystock actually got a Buy recommendation on it
and has client X not excluded it?That’s the traditional approach to compliance in a
transaction-dominated world.This is not the basis for a scalable business model and
therefore has limitations.
Q. So what are the technology implications of achieving strategic compliance?
SH: The technology implications are significant. Enhanced systems are required for
entering and codifying the research as well as client instructions. New systems able
to apply model portfolios and client specific overlays are also necessary. Finally, new
systems are required for continuous monitoring and executing this in an automated,
seamless manner.
The technology needs not only to codify the research into manageable, deployable
“bits” but also to ensure that portfolio assets can be assigned to each asset
category.Technology capacity is also needed to monitor portfolios against changing
asset allocations and, indeed, changing client circumstances which may cut across
existing asset allocations.
The good news is that cost-effective technology to address these requirements is
available in our market now and already facilitating the sustained delivery of this
kind of compliance.
Q. Can strategic compliance genuinely mitigate business risk?
SH: True client-centric service means being strategically proactive inside your
clients’ portfolios. It means running tests on their portfolios regularly to assess
transactional and portfolio compliance balances.Traditionally, and typically due to
conflicts of interest, we had compliance and advisory almost pulling in opposite
directions with the client somewhere in the middle. If stakeholders are pulling in
different directions, that will introduce a level of risk in, and of, itself.
If a portfolio differs from its ideal, a stakeholder (whether it be client, wealth adviser
or the firm) is carrying an unnecessary degree of risk. Remaining fully cognisant of
portfolios requiring attention in the context of the client (not just a model portfolio)
is the most effective means of reducing your investment-directed business risk.
Best practice client
service means being
strategically proactive
inside your clients’
portfolios.
9. Can strategic compliance become the new standard? | May 2010 08BESTPRACTICE CLIENTSERVICE
Being able to demonstrate and achieve this continuously combines a reduction in
business risk with best practice, client-centric service.
So strategic compliance checking and client tailored portfolio rebalancing theory
actually become the same thing. Client tailored rebalancing itself becomes the
measure of compliance. If I’m calculating the rebalancing of a client tailored portfolio
and there’s an adjustment to be made, then something is out of step: whether it be
client compliance (client service risk) or house compliance (business risk). If a client
tailored rebalance calculation reveals that nothing needs to be adjusted, then we
know we have acted entirely inside the client’s own parameters. No further cross-
checking is needed and the interests of all stakeholders remain aligned.
Q. So, consistent with the move towards client-centricity, compliance might
address the client’s specific needs as opposed to just satisfying the regulatory
needs of an organisation?
SH: Yes, that is the direction we’re headed. It’s important to note that, even from
the organisation’s point of view, that’s a desirable outcome. Also, what this means
in terms of compliance is not the nightmare one might expect. Organisations must
merely adopt a compliance regime that focuses not at the point of transaction, but
rather, begins with the client. For a wealth adviser, this is an on-going obligation
embedded in every aspect of managing the client’s portfolio – from conducting
the Needs Analysis to the first SOA and on-going review.Whilst the client’s
portfolio should not move beyond the boundaries of a firm’s APL or set of research
recommendations (eg the outer limits of the portfolio target defined earlier), it
could have infinitely more flexibility within. Strategic compliance provides us all with
a clear, quantifiable means of repeatedly scoring that Portfolio Bull’s Eye.
Just because a decision is compliant with the legally sanctioned ‘house’ view, does
this mean it is aligned with the client’s best long-term strategic interests? Are
decisions enabling the investment process to remain in the centre of the client’s
portfolio target area at all times? In the wake of the GFC, that is the question
needing an answer.
Strategic compliance
provides us all with a
clear, quantifiable means
of repeatedly scoring
that Portfolio Bull’s Eye.