October 05, 2010
Assessing the Landscape as the Crisis Eases
Managing Managers and Investment Risk Post-Crisis
The spring meeting of the Treasury Investment Managers’ Peer Group proved a dynamic one with conversations covering numerous topics, including how to manage external managers and opinions on analytical technology (hint: it leaves much to be desired). Herewith, the meeting’s main themes:
1) External Manager Performance Review. One member team has developed a collaborative, thoughtful and systematic approach to manager evaluation.
Key Takeaway: There is much more to an asset manager review than just portfolio performance. It’s about the broader relationship and partnership.
2) Up and down rate environment. on how to maximize the current low rate environment while preparing to optimally take advantage of forthcoming rate increases.
Key Takeaway: A barbell approach of heavy in the very short term and heavy in the long term seems to be the best position.
3) Analytical Tools. Members agreed no one system can handle the many types of securities and reporting demands.
Key Takeaway: Optimizing a blend of Excel, Bloomberg and/or Clearwater offers the best options for output and flexibility.
4) Managing portfolio risk. Foundational principles and key lessons learned from the crisis for risk management.
Key Takeaway: Place a priority on risk management; never abandon the fundamentals in favor of a popular trend or hot new product or strategy.
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