A typical engagement will begin with a strategic review of business objectives and functions. Leveraging heavily on the business and operational experience of our consultants who have worked at leading investment management firms, the strategic review will cover investment processes, operations & technology strategy and the organization's competitive landscape. Based on the outcome of these reviews and the strengths/weaknesses identified, stradegi can help the client to draft short, medium or long term plans.
stradegi can also help to prepare a risk-weighted priority list to address some of the issues and recommendations. Based on this priority list, the client can then incorporate elements into their business, operational and technology strategies. If the client so prefers, stradegi can also assist in the actual implementation of the strategic priorities that are eventually approved by the client management.
The team is currently working on a number of engagements to identify relevant best practices, design robust and scalable processes, evaluate strategic initiatives such as outsourcing, develop functional strategies aligned with the overall business direction and establish appropriate governance structures.
stradegi has a full suite of investment performance and attribution advisory services right from defining the relevant best practices in performance measurement, reporting and governance to the alignment of fund managers’ KPIs with performance objectives. Stradegi’s experience and services in the performance & attribution function include:
Comprehensive quality measurement metrics (statistics) across all aspects of operations, technology and data management. Some sample metrics:
Good quality investment data and the governance and controls that ensure the integrity of data have become increasingly more important to the investment management industry. The increased regulatory oversight and the introduction of complex new instruments coupled with the ever increasing data points within an organization make it incumbent on data management teams to adopt a risk based approach to defining a data management framework.
In a risk based approach, the entire data landscape is reviewed and assessed to determine the data points that pose the most risk to the organization. Invariably in an investment organization, the data that needs the most attention and poses the most risk is the security reference, pricing, valuation and portfolio static data. Therefore, data management teams spend the majority of their time validating, cleansing and reconciling these data points.
stradegi understands the data issues that affect an investment management organization and can help by recommending and implementing processes, controls and identify potential areas of automation. The objective should be to efficiently manage and deliver quality data to the investment business and mitigate the investment and operational risks inherent with data.
Phased approach to implement a robust Data Strategy
Each firm’s risk management culture, size, scope and geography gives rise to differential practices in how to demonstrate appropriate control in their investment functions. However there are minimum levels of best practice and certain principles of risk management that should be demonstrated in any institution. These standards will also be required by institutional investors, investment consultants and increasingly distributors as part of their due diligence process. stradegi works with clients to define effective investment risk management frameworks to provide management with a clear sight of all the risks they face and effective control processes to ensure independent and demonstrable quantification and management of risks.
stradegi has experience in reviewing and recommending an optimal organization structure based on company goals, objectives and culture. Our approach incorporates the following:
Our consultants, having been in the industry working at leading investment management firms, are in a unique position to conduct benchmarking and peer reviews. The idea is to evaluate a particular investment management firm against the best-in-class peer organizations and identify significant deficiencies and areas of improvement. Typically, the benchmarking looks at the following: