Client request:
This large UK multi-employer scheme wanted to assess the quality of their in-house investment team against various outsourcing models available in the market.
Our approach:
We analysed the costs and benefits of:
• Traditional consultant model.
• Internal CIO with delegated responsibilities.
• Outsourced CIO with delegated responsibilities/fiduciary manager.
• Insured solution (buy-out).
The assessment was carried out in a matter of weeks and took into account various quantitative and qualitative measures including:
• Clarity of governance and alignment of interests.
• Economies of scale/buying power.
• Access to scarce investment opportunities.
• Efficient implementation and speed of decision making.
• Ability to manage downside risks.
• Organisational continuity and reduction of key man risk.
• Innovation and capacity to pro-actively anticipate changes.
Deliverables for client:
• Confirmation that the existing organisation delivers quality at a reasonable cost when benchmarked against various best-in-class alternatives.
• Advice on the required teams and competencies at various levels.
• A clear framework of delegation with a scorecard to hold the CIO accountable.
• A framework to assess the effectiveness of the Investment Committee.
• Justification of the previously contemplated case for governance change.
• Clear and concise arguments to communicate to the scheme’s stakeholders.