A significant aspect of the professional investment management process that continues to enjoy consistent attention for improvement and appropriate application as well as management, we provide this service in fulfilment of our long-standing objective of maintaining transparency and objectivity in client-manager relationships. Getting the manager to consistently do the appropriate thing in the investment management process rests to a large extent on the selection of a valid and believable benchmark at the very start of the relationship and every investment process. The adherence to style and other promises can only be monitored and tested by the selection of a valid benchmark for the client’s mandate or account objective and the relevance of this crucial process just cannot be overemphasized.
Investment performance reporting these days has taken on a more serious dimension in terms of transparency and objectivity. The investment manager is required to do exceedingly more in the area of standardising his performance measurement and presentation procedures in order to facilitate performance comparability across the globe. A fast growing global phenomenon – compliance with the GIPS standards – now addresses these concerns and at KingsThrones, we possess both the expertise and experience to assist client-managers successfully navigate the rather unnerving process of attaining compliance. The GIPS standards are ethical standards to promote fair representation and full disclosure of performance measurement procedures and actions in their presentations. We provide this service as independent consultants to intending investment managers.
Performance Evaluation & Reporting – PE+R
Provided to both the manager and the client under strictly separate mandates, this service entails the rigorous analysis and interpretation of, and advice/recommendation, on the performance of a manager or account as the case may be. Performance evaluation involves the three main activities of measurement, attribution, and appraisal. To this end, we are deeply engaged in the assessment of the internal processes of the manager almost as an integral function, to reach meaningful and reliable conclusions, and as such the highest level of professionalism is involved in the service delivery. As a matter of preference or choice, our service delivery here entails the setting up of the appropriate evaluation department or unit for intending managers, and this is also available to investment asset custodians in their value-added services channel. To investors, this service is provided under strict agency authorization of the client and it requires no less than the same level of professionalism as when dealing with the manager.
Engaging the professional investment manager that is appropriate for the client-mandate is not to be taken lightly as a significant aspect of the investment overall performance just might be dependent on the professed skill of the manager. Quite often investment performance may also not reflect the skill of the manager and one finds in this instance, elements of pure chance or luck. Whilst the presence of consistency is a reassuring factor in the performance track-record of a manager, it is a critical process that this is clearly established and well-defined at the very outset of the engagement. We continue to conduct this search independently of both clients’ and managers’ mandates as a basic requirement of our own working database at KingsThrones, and this supports the ease of our doing business most professionally with all our clients and other industry stakeholders.
These are processes strongly recommended as follow-ups to further enhance the credibility of the all-important and reassuring GIPS-compliant presentation. Whist the verification service serves the requirement of an attestation to the consistent adherence and application of the manager’s internal policies and procedures on GIPS-compliant activities like composite construction and switching, returns and risk calculation, benchmark specifications and others, the examination service is to confirm the accuracy of presented results of selected composites.
Independent Research & Appraisals
Consistent with our tradition of providing ethical and objective investment analysis, advice and recommendations, our independent research services are supported by deep quantitative analytics of market data within the KingsThrones’ framework of specialist independent consulting services. Any other engagement outside of this particular framework, especially in the area of compensated research work would be disclosed as such in our final reporting. Services provided here include financial advice, asset and company valuations and economic/market analyses for transactions and investment decisions.
From corporate governance to risk management and vice-versa, we provide bespoke services in the design and implementation of policy frameworks and where required, automation, in enterprise as well as investment risk management. Services provided here include systems review/appraisals and necessary upgrade recommendations.