International Equities

Written by Michael McAlary

Service Area: Performance Improvement

Industry Sector: Financial Services – International Equities

Situation/Responsibility

Our client had commissioned a report from its Asset Consultant. This report recommended further portfolio diversification into international equities. Chairmont was requested to undertake a market assessment of the fund managers who provide international equities funds.

 The client wished to examine both the direct Investment and Manager of Manager models and understand which managers had been obtaining consistent above market benchmark returns (Alpha), their approach to foreign exchange risk management (hedge v no hedge), global coverage and their expertise, fees and services.

Risk/Challenges

The key challenges were to:

  • Ensure that the information provided was compared on a “apples with apples“ basis, because although templates were provided for the managers to complete, not everyone followed the template or combined different answers for commercially sensitive reasons.
  • Manage the various respondents and their expectations, particularly as they saw it as an opportunity to win all the fund management business of our client.

Achievements

The report was accepted and the recommendations regarding the selection of the fund manager were implemented.