Market Risk, ALM, Funding and Liquidity Credit Technical Risk and Underwriting Insurance Risk, Underwriting and Actuarial Services Operational Risk Investment Risk Firmwide Risk Management Strategy Operations Business Transformation and Program Management Corporate Finance and M&A Regulatory and Compliance Basel2 and Solvency2 IT
Retail Banks Commercial Banks Investment Banks Asset Management Pension Funds Life Insurance Non-Life Insurance Corporate Treasury Private Equity
Our Client Services in 2007 Our Service Delivery Options in 2007 Training Secondment Consultancy Recruitment

A GlobeRisk Perspective on Asset Management

Asset Management (AM) is yet another financial services sector in transformation.

The old AM model was one in which performance needed to be explained and justified to sponsors, but little beyond. Typically firms faced little real challenge and investors rarely changed their AM firm. At the retail end of the client spectrum customer attrition is/was particularly low driven by tax considerations. Logically, therefore the AM firms took little investment risk and stuck mainly to benchmark.

After fees, therefore, few AM delivered real or significant client value.

The new model see AM moving away from "closet tracking" into four components

The "sexy" end of AM is, of course, hedge funds. Here, fees are typically "2 and 20" (i.e. 2% flat charge per annum and 20% of performance achieved) although some funds are charging even more. The basis types of fund are:

The keys to success in the new model, across all parts of the AM industry, are:

GlobeRisk has developed several consultancy services to assist Asset Management firms as they transform

In 2007 we can offer the following services: