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INVESTMENT MANAGEMENT

This pillar is to discover the strength of private banks who offer top-notch investment platforms for the diverse needs of the families/foundations.

The categories are:


 DISCRETIONARY PORTFOLIO MANAGEMENT (DPM)

We are looking to award a bank which offers the best-in-class discretionary investment services across all traditional and alternative asset classes for their due diligence, stewardship, performance and risk management.   The bank must demonstrate to the panel of jurors their following capabilities:

  • Due Diligence:  Whether the bank has an adequate process to conduct due diligence for products, or are they merely relying on third-party providers for information, and how does the bank arrive at their own opinion and own view. How are product ideas initiated and how are they filtered down to the best? Please include a sample DDQ or RFI at the time of entry
  • ESG Integration: Whether the team has incorporated Environmental, Social and Governance (ESG) factors into investment decisions, and whether there are a stated ESG criteria of focus, sector-specific ESG policies and exclusion lists, investment committee review of ESG exposures, accountability of fund managers for ESG integration.
  • Suitability: Whether the bank has a robust risk management system to ensure that the clients and the bank have a clear understanding of the portfolio services to be managed, how the corresponding suitability obligations/gaps are implemented throughout the stages of initial set-up, investment selections and ongoing suitability with risk levels of underlying investments continually changing
  • Investment Styles: What is the firm-specific investment philosophy and portfolio management strategies and what is the core competencies? Does the bank have a robust process to map clients’ requirement to the different investment styles, income vs. growth, passive vs. active, benchmarks focused, or customized styles to match the distinct needs of clients? Please include a sample discretionary/specialist mandate at the time of entry
  • Research and Investment Decisions: What is the information gathering process, and whether the bank has an extensive research method and resources (external and internal),  what is the team structure and what is the investment decision process protocol between the committee, portfolio manager, external investment managers (if applicable).
  • Team Strength: Please describe the background of the DPM team, their people, reputation, a track record of investment management and performance, fees and how is it tied to the incentives of the team

INVESTMENT ADVISORY SERVICES (IAS):

We are looking to award a bank which offers the best-in-class investment advisory services across all traditional and alternative asset classes for their Client/RM working model, transparency, reporting and accountability, digitization, and research.   The bank must demonstrate to the panel of jurors the following capabilities:

  • Due Diligence:  What is the information gathering process, and whether the bank has an extensive research and an adequate means to conduct due diligence for products, or are they solely relying on third-party providers for information, and how does the bank arrive at their own opinion and own view. How are product ideas initiated and how are they filtered down to the best? Please include a sample DDQ or RFI at the time of entry
  • ESG Integration: Whether the team has incorporated Environmental, Social and Governance (ESG) factors into investment decisions, and whether there are a stated ESG criteria of focus, sector-specific ESG policies and exclusion lists, investment committee review of ESG exposures, accountability of fund managers for ESG integration.
  • Suitability: Whether the bank has a robust risk management system to ensure that the clients and the bank have a clear understanding of the portfolio services to be managed, how the corresponding suitability obligations/gaps are implemented throughout the stages of initial set-up, investment selections and ongoing suitability
  • Advisory Model: What are the different advisory offerings in the bank based on investable assets, and what is the working model between the RM and the Client work? How is the establishment of objectives, restrictions, and benchmarks come to an agreement, and what is the ultimate accountability of the advise? How frequent is reporting to the client and the form of reporting, and the frequency of portfolio evaluation and recommendations are offered?
  • The Fundamental of Advice: What are the firm-specific investment philosophy and the style of asset allocation being implemented?    Please include an example of analysis for a recommended asset allocation based on the risk/reward spectrum.  Please include samples of the current 1, 3, five years of investment returns compared to their relevant benchmarks (after fees) at the time of entry
  • Team Strength: Please describe the qualifications of the principals leading the advisory team, and the qualifications of  the overall group of individuals who will be directly responsible for clients account, the number of years of experience, investment philosophy and client servicing philosophy

ALTERNATIVE INVESTMENT PLATFORM

We are looking to award a bank which offers the best-in-class platform for investors to access alternative investments across different opportunities.  The investment includes financial assets such as private equity, hedge funds, real estates, commodities, etc.…. and tangible assets such as precious metals, art, and wine, etc.… The bank must demonstrate to the panel of jurors their following capabilities:

  • The Breadth of Offerings: How holistic and comprehensive is the offering and how relevant are they to the bank’s existing customer segment? Does the bank offer a balanced palette between financial assets and tangible assets, and how unique are these investment opportunities?
  • Research and Inclusion: What is the information gathering process, and whether the bank has specialized teams on different asset types to identify a sound investment when they see it? Does the bank have an adequate process to an extensive research method and resources (external and internal), to help clients find the best structure with the best fees, risk managed and valuation?
  • Due Diligence: Whether the bank has an adequate process to conduct due diligence for products, and whether there are teams of specialists to conduct product reviews? What is the bank’s due diligence framework and how flexible is the process to cater for the ongoing evolution of investment and operational DDQ? For Funds of Hedge Funds products, how is due diligence being conducted on the underlying investments especially if multiple managers manage the structure cuts across multi-strategies and disciplines?
  • Suitability: Whether the bank has a robust risk management system to ensure that the clients and the bank have a clear understanding of the risk appetite for clients incorporating alternative investments into their portfolio? How does the corresponding suitability obligations/gaps are implemented throughout the stages of initial set-up, investment selections, and ongoing suitability?
  • The Fundamental of Advice: How well is the front-line staff trained to identify the coefficient between different asset types, and how well can they map clients’ appetite across these multi-asset disciplines? How is the investment introduced to clients, and whether the process is well documented? Is literature rolled out in a digestible way that clients who have been investing in the more traditional asset classes can easily understand?
  • ESG Integration: Whether the team identifies opportunities in the ESG pillar, and does the team incorporate Environmental, Social and Governance (ESG) factors into their onboarding decisions? Whether there are stated ESG criteria of focus, sector-specific ESG policies and exclusion lists, investment committee review of ESG exposures, accountability of fund managers for ESG integration.
  • Team Strength: Please describe the qualifications of the principals leading the advisory team, and the qualifications of the overall group of individuals who will be directly responsible for clients account, the number of years of experience, investment philosophy and client servicing philosophy. What is the bank doing on an ongoing basis to support, train and upskill the staff within the team and whether there is a well-established succession protocol in place to prevent disruptions?

SUSTAINABLE INVESTMENT CAPABILITY:

We are looking to award a bank which offers the most genuine sustainable investment approach that enables investors to integrate environmental, social and governance (ESG) considerations into their investment strategies in traditional and alternative asset classes and create positive benefits for society.  This award is to evaluate the banks’ ability in integrating ESG and Socially Responsible Investment principles into their manager selection, product sourcing across all asset classes, screening and exclusion, onboarding and off-boarding providers, offerings of ESG mandates, etc.…  The bank must demonstrate to the panel of jurors the following capabilities:

  • Commitment: Does the bank has an explicit commitment to applying environmental, social, and corporate governance (ESG) analysis, and such determination penetrates through to the products/funds being on-boarded? Is ESG integrated to the portfolios across the board, and/or has signaled an intention to incorporate ESG through membership of the UN Principles for Responsible Investment. There are resources dedicated to ESG integration, such as dedicated staff and/or use of external data providers.
  • ESG Policies & Procedures: There are disclosed policies and procedures for integrating ESG information and metrics into the due diligence and investment process, for example: stated ESG criteria of focus, sector-specific ESG policies and/or exclusion lists, investment committee review of ESG exposures, accountability of fund managers for ESG integration.
  • The scope of Application: The application of the discretionary managers or investment advisory team’s ESG Policies & Procedures to specific asset classes is clear, and whether there is a plan to extend the scope of application in the future to further asset classes.
    Outcomes: Relative to an external benchmark, the relevant portfolio outperforms the benchmark in at least one area of ESG evaluation (e.g. outperforms the environmental risks/opportunities inherent in the MSCI World portfolio).
  • Engagement: If company engagement is a suitable part of the discretionary manager’s investment process, then the fund manager provides evidence of including ESG concerns into company engagement. For example demands on external managers’ due diligence questionnaires, due diligence documentation, proxy voting policies, working collaboratively with other investors to highlight ESG issues.
  • Stewardship: The demand for fund manager discloses a clear policy on stewardship that includes specific best practices in ensuring the protection of shareholders’ capital, for example, a commitment to monitoring of and engaging with investee companies, managing conflicts of interest, proxy voting, acting collectively with other investors.
  • Team Strength: Please describe the qualifications of the principals leading the Sustainability team –  the number of years of experience, investment philosophy and client servicing philosophy.  Please also offer a sustainable sample mandate at the time of entry.

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KEY DATES

  • Entry Period: Registration is Closed!
    October 09, 2017 to November 20, 2017
  • Online Submission:
    November 20, 2017 to December 15, 2017
  • The Gatekeepers' Forum:
    March 6, 2018 (Singapore)
  • Announcement of Finalists:
    March 13, 2018
  • Awards Gala Dinner:
    April 27, 2018 (Singapore)

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