Asset consultant/ fiduciary manager/multi-manager
Table 1: The potential services provided Asset/liability modelling
Setting of the Investment Policy Statement
Identifying and blending optimal range of managers to deliver on the identified liability Valuation of alternative asset classes (private equity, direct property, etc.) Performance reporting and individual manager level
ESG Reporting Rebalancing and dynamic hedging strategies Unitisation services whose function it is to implement these three steps directly on behalf of the fund.
There are persistent debates as to which is more effective: a holistic framework for managing and implementing the whole liability management problem, or a service where all these functions are separated. Unfortunately, while the first alternative may produce better long-term
Risk budgeting Establishing and managing strategic
allocations to assets and strategies
Risk management Reg 28. compliance
reporting Performance analysis aggregate and attribution Proxy voting reporting Transition management
Stock brokerage or procurement services results, the conflict of interest issues can be difficult to adequately manage. Know the ‘animal’ you are dealing with and make sure you manage those conflicts.