Presentation on theme: "Independent Advisory & Fiduciary Management"— Presentation transcript:
1 Independent Advisory & Fiduciary Management dedicated to Sophisticated InvestorsIntelligens Asset Management Ltd Professional Practice
2 Table of Contents Intelligens’ Mission Strategic Advisory Independent Advisory dedicated to Wealth Management ServicesFiduciary ManagementFiduciary Management vs Traditional Investment FrameworkWhy Intelligens as Fiduciary Manager: Mission and Value PrepositionBusiness Model: Services dedicated to Institutional InvestorsFinal RemarksAnnexes
3 Respect for Clients brings Worthwhile Results Our MissionIntelligens comes from the latin expression “Intelligo ut credam – I Understand to Believe” and represents our core belief. To offer our professional advise with Independence and gain Trust through clear results, useful to all beneficiaries involved.Only when our Advice is considered Clear and Worthwhile we can say our mission is accomplished.Our Strategic Advisory and Fiduciary Management Services are based on Professional Credibility, Projects Sustainability, a Long Term Investment Horizon and Sharing of Interests with all the actors involved.Respect for Clients brings Worthwhile Results
4 Improve Portfolio Management and Governance of the Investment Process Capturing a Clear International Trend and deploy the good lessons learned into the Italian Investment practiceIn delivering our Advisory services Intelligens is keen to:Provide Sophisticated clients with tailor-made investment solutionsOffer Advisory Services without conflicts of interests, i.e. without proposing funds nor portfolios directly managed by Intelligens or offered by Managers connected in any sort of company connection with Intelligens.Offer a complete set of Services able to improve the control on the overall Investment plan.Select Portfolio Managers identified Worldwide and analyse their diversification effects on the overall plan.Identify new asset classes or investment Strategies able to offer efficient investment solutions.Offer innovative Risk Management techniques and deliver timely reports on risk and performance attribution able to improve the overall control and the interaction with delegated Portfolio ManagersHelp the Board and make its role more efficient and focussed on high quality controlsImprove Portfolio Management and Governance of the Investment Process
5 Strategic AdvisoryInvestment Decisions are often the results of an accurate listening exercise. The open dialogue with Clients and within our Marketplace guides our Advisory Efforts. Financial Inclusion, Combination of Financial Results and Positive Social Impact, Risk Management, Disintermediation of the Banking Industry, Structural Funding Gap impacting the SME and need to enhance the performance of the Fixed Income Portfolios, all depict a Business Environment where Intelligens is asked to Architect and Control Innovative Investment Solutions.Examples of Innovative Investment Solutions designed by our partners2010: V.Volpe, Italy: MICROFINANZA 1: The first Italian Closed-end Fund investing in Microfinanceon a global scale, combining Financial and Social Returns2014: A.Van Nunen, The Nederlands: The “Nederlands Ondernemings Fonds” (NLOF), a Dutch multi party initiative to facilitate direct lending by institutional investors to Dutch middle market corporate borrowers.Civil Servant Activities:2014: V.Volpe, Advisory dedicated to the Republic of the Union of Myanmar promoting Business Initiatives selected in light of potential value added for the growth of Myanmar (activity carried out with the Honorary Consulate of Myanmar, Turin)Note: Picture from the launch of a Fund where MF1 invested with European Investment Bank, IFC – part of the World Bank Group, KfW (The German Development Bank), the Belgian Investment Company for Developing Countries (BIO), Netherlands Development Finance Company (FMO) and a range of private banks and investors: Belgian trade union ACV-CSC Metea, VDK Spaarbank, Germany’s Bank fuer Kirche und Caritas, Norwegian Microfinance Initiative (NMI), and others.
6 Independent Advisory: - Wealth Management Services Household, Family and Corporate Services:Protection (Trusts, Insurance Policies and Fiduciary Mandates)Advice (Real Estate , Legal, Tax and Notary Services. Venture Philanthropy)Control (Cash Management, Strategic Advisory, M&A, Origination towards Financing, Fund Raising)Consolidated Portfolio Advisory and Risk ManagementIndependent Dialogue without Conflicts of Interests with:- Investment Banks- Custodian Banks- M&A and Capital Markets’ Boutiques- Law Firms- Asset Managers- Private BankersFew clients, extreme respect and care on designing tailor-made services,selecting and controlling the best expertsClear and transparent Remuneration (no rebates from Experts involved)6
7 Fiduciary Management A solid European Trend, useful to examine Why Intelligens Fiduciary Management is an innovative methodology used to organize the Investment Framework of sizable portfolios. It reflects the expanding range of actors involved and the need to achieve comprehensive Risk Management, strategic decision making, effective and transparent governance of the Investment Process.Fiduciary Management evolved in the early years of 2000’s in the Netherlands and in UK. In 2012 the FM Market in Europe passed € 1 tr, (+128% in Assets, clients since 2010), recent surveys(*) indicate over 750 clients in Europe in 2013 from 0 in 2000, and a growth forecast of additional 30% in assets and over 100% in the member of new clients in 2015.The first recognized professional introducing FM in the Netherlands and in UK has been Anton Van Nunen. VGZ, a Dutch insurance Company has been the first client using an FM model, designed by Van Nunen.In 2007 Anton Van Nunen authored Fiduciary Management: Blueprint for Pension Fund Excellence. This book has now been translated in 4 languages and is a reference in FM professional practice. (**)In 2009 Anton Van Nunen and Vincenzo Volpe started working together researching how the FM framework could be applied to the Italian Institutional Investors’ Industry.Since 2010, thanks to Anton and Vincenzo’s advise, several relevant Italian Institutional Clients introduced Fiduciary Management as their Investment modelIn 2013 Intelligens Asset Management Ltd has been incorporated . Vincenzo serves as CEO and Anton is partner in charge of FM Professional Practice.(*) Spence Johnson, Fiduciary Management, market Intelligence 2013(**) There will soon be the Italian release of the Book, in collaboration with Intelligens
8 Fiduciary Management vs Traditional Model Current model, what may be improvedActuariesAsset ManagerConsultantsLiabilityStrategicAsset AllocationBenchmark SelectionRisk BudgetingManagerselectionManagermonitoringOverallperformance1234Current Investment Governance reflects a fragmented set of roles and Responsibilities where Costs may be saved, Risk Budgeting and Continuous Overall Control on the Investment plan may be introduced.
9 The Investment Team is more solid and in control Fiduciary Managed modelFrom a set of Reports produced by external specialists to a direct and constant control over the entire Investment plan, with tight control on costs and efficiencyManagerMonitoringIntegrated Risk and Performance Attribution MonitoringActuariesFiduciaryManagerLiabilityStrategic Asset AllocationBenchmarkSelectionRiskBudgetingManagers SelectionManagerMonitoringOverallPerformanceConsultantsInvestment Team1234FM Approach: to work with the Investment Team and improve the overall Control on the Investment Plan and the Governance of the Investment Process.Innovative Tools : Risk Budgeting and Overall Risk and Performance Attribution Monitoring techniques. Consultants or external experts (Actuaries) may be chosen for their specific competencesThe Investment Team is more solid and in control
10 Italy Why FM may improve Investment Experience Relevant Trends, example on the Pension Funds’ IndustryFrom Regulatory Authorities:1. Clear indication to strengthen the Portfolio Management Culture and Function2. Opening towards Investable Universe connected to the enhancement of the Governance of the Investment Process3. Opening to new forms of Delegation and Control of the Investment Management ActivitiesFrom the Industrya. To Enhance portfolio management activities1. portfolio management delegation of relevant asset classes (i.e. International Equity)b. To Implement an organic Investment plan and an innovative risk management framework to improve the Governance of the Investment Process (more efficient and better controlled)c. Interest towards the creation of dedicated Investment Vehicles1. Simplify accounting procedures2. Save VAT3. Inject efficiency in Portfolio Rebalancing4. Generate a steady cash flow (yearly coupon)
11 The Value Proposition of Fiduciary Management Credibility and Control over business operations through customized investment solutionsTransparency, achieved through direct access to portfolios and full control over Depositary Bank’s operations.Operational Flexibility, our model starts from our clients’ needs, which are translated into tailor-made solutions offered to the Board and its Risk and Investment Committees.Continuous control over the asset managers’ activity: chosen among world’s best and subject to a careful due diligence and constant monitoring.Risk Budgeting and Risk Management are the Fundamentals of our Investment Advise.Efficient and Competitive Pricing structure with interests aligned with clients’ through base and performance fees, bundled and unbundled fees ‘ structure.Market Intelligence and Research to propose new investment solutions and hedging strategies.International Expertise, to guarantee outstanding professional standards.Continuous Educational effort , to guide investors through financial market uncertainties.Any Sophisticated Investor can afford a professional structure looking after his Investment Plan
12 FM at Intelligens, Business Model Detail of services offered Strategic ServicesALM coordinationAnalysis of the Investment ProfileAdvise on Investment Objective and Strategic Benchmark definitionProposals for the design of the Strategic Asset Allocation and SAA reviewPortfolio ConstructionRisk BudgetingEducation and trainingServices for the Governance ofthe Investment processConstant Risk Monitoring on single mandates externally managedConstant Risk Monitoring on the overall portfolioCollaboration for analysis and management of conflict of interest (see next slide for details on these services)Asset Management ServicesPortfolio Managers SelectionImplementation of the investment plan in line with what is agreed in the strategic servicesDefinition of Hedging StrategiesPortfolio rebalancing policy / tactical asset allocationDesign and implementation of a bespoke Investment Vehicle (see example in App.3)
13 Business Model Services for the Governance of the Investment process (details) 1. Constant Risk Monitoring onsingle mandates externally managedCompliance with guidelines’ mandateConsistency between active risk level fixed in the guidelines and ex post active risk level verified in different time horizonsAnalysis of Information Ratio in different time horizonsAnalysis of Risk and Performance attribution detailed by active risk factorsDesign of a tailor made set of Risk and Performance Attribution Reports2. Constant Risk Monitoring on theoverall portfolioAnalysis vs Strategic BenchmarkAnalysis of the Risk Budget vs actual active risk levels in the overall portfolio, considering the actual correlation between strategies and delegated managersAnalysis of the Risk and Performance contribution vs the overall portfolioDesign of a tailor made Risk and Performance attribution on the overall portfolio3. Collaboration for analysis and management of conflict of interestsIndependent assessment of the internal Governance of the Investment Process.Identification of controls to identify conflicts and actions to manage them in all Transparency
14 Intelligens, a Credible Partner for Informed Investors Intelligens: Final Remarks Enhancing the Governance of the Investment Process and the Innovation of the Investment SolutionsFirst, we listen to clients’ needs, then we build tailor-made investment solutions.Proven International Experience as independent Advisor.Mission to generate Value working with the Investment Team and for the Board, with respect of their roles and sharing their goals.No conflict of Interests: Transparency and Control on Delegated Portfolio Managers’.Daily Controls and Optimisation of the Services offered by Custodian Banks.Alignment of Interests with clients witnessed by Fees Structure.Innovative Risk and Performance Controls on the overall Investment Plan.Investment Research on new assets classes or Hedging Strategies.Full discretion in Investment Choices remains in the hands of the Board.Capacity to instil Socially Responsible Investment Principles in each Investment Solutions.Intelligens, a Credible Partner for Informed Investors
17 Annex 1: Fiduciary Management in Intelligens Complete array of Services, but Clients choose just what they needPortfolio ConstructionAdvice in thePre-InvestmentAreaDialogue with ActuariansStretegicBenchmarkRiskBudgetStrategic Asset AllocationManagerSelectionPortfolio ImplementationALMOngoing Managers Selection and Due Diligence ScreeningPortfolio Rebalancing Policy, Tactical Asset Allocation and Hedging StrategiesRisk Monitoring at single Fund LevelOverall Portfolio Risk ManagementContinuous and Proactive Portfolio Monitoringand Depo Bank oversightCorporate Social Responsibility Screening17
18 Annex 2: Fiduciary Management Market Players European and Domestic Market Players, new coming playersEurope, independence, 52% of the AUM are managed through external asset managers, % growing, disclosure frequency, daily and weekly disclosure on the underlying positions in almost 60% of the cases, % growingItaly: Interest towards taylor made vehicles, attention to costs, explicit and implicit (Spending Review)European Market Italian MarketAllianz GI (Ger) Tower Watson (UK) Blackrock (UK) Blackrock (UK)Aon Hewitt (UK) Pens Plan (Ita)APG (NL) Polaris Group (Lux)AXA IM (Fra) Russell Investments (UK)MN Services ( NL ) Allianz GI (Ger)Goldman Sachs (UK) Mercer (UK)Russell Investments (UK) Goldman Sachs (UK)PGGM (NL) Intelligens (UK)Italy is gaining momentum for International FM and Consultants with polarization towards bigger mandates (over 500 mln €) role of the current Consultants under scrutiny
19 Annex 3: Asset Management Services – example Design and implementation of a bespoke Investment Vehicle: the Sicav Sif Make or Buy analysis and Advise to “Buy and control”Make or Buy (A vs B)A - Make. Intelligens assists theclient to assess the project for thecreation of a Sicav Sif in Lux alsothrough the liaison with domesticprofessionalsB - Buy. Intelligens guides theClient towards a “turn keysolution”, through the choice ofan efficient Custodian Bank ableto offer the entire set ofGovernance Services (creation ofa vehicle, i.e. Sicav Sif, Governance of the Board, Risk and ComplianceCapabilities)_____The turn key solution benefits ofbundling all services’ prices in theFund NAVInvestment/Advisory ServicesA. Intelligens may introduce theClient to a Fund ManagementCompany able to offer an investment platform and host the managers selected by the clientB. If “turn key solution” is chosen, Intelligens, as the Sicav SIF Advisor, will work with the Custodian to offer the platform where delegated portfolio managers (existing or new) may migrate or may be hosted.______In the Buy Option , as Advisor, Intelligens has direct access, real time, to all the positions and builds with the Custodian tailor-made risk and performance attribution Reports.Asset Management ServicesA. 1 Intelligens may have an input inindicating talented managers indifferent asset classes or designsophisticated hedging strategiesimplemented in FundsA.2 Intelligens may offer his reportsand may participate in Risk andInvestment CommitteesB.1 Intelligens and the Custodian maydesign a coupon and the “Fund” maydistribute a cash flow on a timely basisdecided with the clientB.2 Risk Mgt guaranteed by Custodianunder the control of Intelligens______In the Buy Option Risk Management,Compliance and internal GovernanceFunctions are under the responsibilityof the Custodian Services
21 Annex 5: Team (*) Vincenzo Volpe, CEO and Founding Partner Anton Van Nunen, Head of Fiduciary Management Professional PracticeAlessio Fontani, Chief StrategistSimone Frigerio, Head of Quantitative ResourcesAlex Darrè, Investment AdvisorHilda Mejia, Office Manager(*) Intelligens has been incorporated last July 2013 in London. Currently is still in a start up mode and most of the professionals mentioned in this list act as advisors of the company and are not formal employees.
22 Annex 6: Short Bios Vincenzo Volpe email@example.com Since January 2013 Vincenzo is working on the Start up Intelligens Asset Management Ltd, where he serves as CEO.He has been Head of the Investment Management Division of Polaris Investment Management Italia SGR from 1 June 2009 to December 2012, joined Polaris Group on 1 March 2009 as Head of Advisory and Business Development of Polaris Investment S.A. Vincenzo has spent 14 years working in the Goldman Sachs Group, which he left at the beginning of 2009, as Managing Director of the Asset Management Division and Responsible for the Italian Market. His experience at Goldman includes Product Accounting, Risk Analysis, Legal and Regulatory Affairs, Advisory and Institutional Business Development. Graduated in Economics in Rome University (L.U.I.S.S.) in November 1988, Certified Public Accountant in Rome since may 1991, in 1997 received the diploma from Bocconi University`s “IV post graduate course on Stock Exchanges and other Regulated Markets”. Vincenzo has served as Chairman of Rural Impulse II, Supervisory Board and is Advisor of Microfinanza I, closed end Fund created in 2011 to invest in Microcredit.Alex DarrèAlex is currently Founding Partner of Hedra Investment Ltd. He has matured a 20 years’ experience as Portfolio Manager, Business Professional and Quantitative Tecniques expert. From January 2007 to March 2009, in Goldman Sachs – Investment Management Dvision, Alex was responsible for Goldman Sachs Hedge Fund Strategies(ex Commodities Corp) business in Europe, Middle East and Asia. In his role he was Board Director for Goldman Sachs’ Dynamic Opportunities, member of the HFS Operational committee and the Alternatives Capital Market Group. From January 2001 to January 2007 FRM – Financial Risk Management; Director, recruited to develop FRM’s expertise in credit derivatives and macro trading strategies; took charge of business development for Europe and became Global Head of Structured Products; in charge of the conception and launch of several funds. From July 1996 to June 2001, Senior Trader – Credit Derivatives; UBS Warburg in London; in charge of managing complex risks and non- replicable exposures. Member of the Strategic and Large Risk committee; built the models and traded the structures that allowed UBS to become number one in long-dated credit structures. Alex holds a Bachelor Degree in Econometrics from the University of Sorbonne - Assas, Paris and a Master’s Degree from Lyon Graduate School of Business .
23 Annex 6: Short Bios Anton Van Nunen firstname.lastname@example.org Since 1998 Anton has been the director/owner of Van Nunen & Partners, an advisory company for both institutional and private investors. His assignments have included restructuring investment processes at Interpolis Insurance Company, Van Spaendonck Institutional Investment, VGZ-IZA Health Insurance Company, Campina Pension Fund, Yarden Insurance Company, the Doctors Pension Fund Services (AUM € 14 billion), the printing industry’s pension fund ( € 11 billion), the combined pension funds at Cosun, Aviko and Suiker, the pension funds of Swedish SCA, Telegraaf Media Group, the industry-wide pension scheme of wholesale and retail, the Prins Bernard Cultuurfonds, Allianz Global Investors (Munich,London), Polaris , Syntrus Achmea, and ZLTO (farmer’s organization) .He is an advisor to the investment committees of the pension funds of Campina, Provisum (C&A), Arcadis and SCA, of Dela insurance company and ZLTO, he is an advisor to Syntrus Achmea (80 billion) and he regularly teaches at Erasmus and Nyenrode University. In 2008 Anton won the European Pensions Award for Personality of the Year, 2009 the Gold Award for Outstanding Industry Contribution from Investment & Pensions Europe, 2011 the Decade of Distinction Award from Global Pensions.Anton received his Ph.D. in macroeconomics and the theory of money, credit and banking at Tilburg University. He was an assistant professor for 12 years at that university and published in the fields of macroeconomics, banking and financial markets. In 2007 he wrote “Fiduciair Management, Een blauwdruk voor een goed bestuur van institutionele beleggers” (Heinen Publishers) (second edition 2008) and “Fiduciary Management, Blueprint for Pension Fund Excellence (Wiley & Sons, New York). A Japanese edition was published in March 2009 and a German edition followed in May 2009.Simone FrigerioBefore joining the Start-up project at Intelligens Asset Management Ltd, Simone has served as Head of Risk Management at Polaris Investment Italia SGR, an Asset Management Company dedicated to non-profit institutional investors, focusing on the company’s implementation of risk management framework. Simone started his career as Investment Risk Manager at Vegegest SGR, a retail Asset Management Company, supporting as well as giving advice on asset allocation issues.Simone graduated in Economics at the Catholic University of Milan (2002). He received a MSc. in Economics (Universitat Pompeu Fabra, Barcelona, 2005) and a Ph.D. in Economics and Management (Polytechnic University of Turin and University of Bergamo, 2006).
24 Annex 6: Short Bios Alessio Fontani email@example.com Alessio Fontani is a Ph.D in Monetary Economics, with a very pronounced knowledge of money, banking and financial markets theories and practices. Visiting professor at LUISS Guido Carli University – Rome since 1992, he’s Senior Research Fellow at LUISS’ CASMEF (Arcelli’s Centre for Monetary and Financial Research), and Scientific Committeee member at Tor Vergata University of Rome’s CREG (Law and Economics Research Centre).Alessio has been head of Global Financial Markets Research Department of CR Firenze Bank Holding from January 1994 to December In such position, he has matured over a 20 years’ experience as Global Investment Strategist, Risk Manager, Quantitative Techniques and Investment Scenario expert. In his role he was Board of Directors member for CRF Gestione Internationale SA - Luxembourg, Risk Manager for Soprarno SGR – Italy, Advisory Board member for Banque Financiere Cardif/Centrovita Assicurazioni –BNP Paribas. He also has a significant expertise in both structured finance and derivatives, syndicated loans and securitization processes, matured during five years of work in a specialized SICAV’s in Luxembourg.Hildaura MejiaShe has been a Personal Assistant at Quaestio Capital Management SGR, where she was the assistant to the President of the Luxembourg Holding Group, as well as doing planning, preparation and filing for Investment Committee. From October 2011 to December 2012 personal assistant to the Head of Investment Management; provided assistance to the President of the Board of Directors and its members; supported the legal department for the creation and collection of paperwork for Board of Directors meetings. At Lazard Investment Banking, she worked from May 2010 to September 2011, as Executive Assistant to the Head of Legal Affairs as well as to the European Administrative Director; From 2004 to 2009, she was a Personal Assistant at Goldman Sachs International, where she became a trusted assistant to the Managing Directors of Investment Banking Division. Hilda is fluent in Italian, and English. A native speaker of Spanish, she speaks also French, Portuguese and German. She graduated in Arts, Secondary Education: French and English from the National University of Trujillo, UNT; Peru.
25 DisclaimerThis presentation is for professional investors only and is not intended as an offer or solicitation with respect to the purchase or sale of securities, including shares of the Funds.While reasonable care has been taken to ensure the information contained herein is valid, no representation to its accuracy or completeness may be guaranteed before the project is implemented. Opinions and estimates may be changed so as name of the Companies mentioned.The authors and the entities mentioned may at the moment accept no liability whatsoever whether direct or indirect that may arise from the use of information contained in it. Accordingly, this is for distribution solely to persons permitted to receive it and to persons in other jurisdictions who may receive it without breaching applicable legal or regulatory requirements.It may not be copied or distributed to any other person. Investments involves risk. The past performance of investments is not necessarily a guide to future returns. Changes in rates of exchange and other factors may cause the value of an investment to go up or down. The offering documents should be read for further details.