Manish Solanki
Operational Risk Consulting Leader - Sentinel Europe
Building and maintaining an investment portfolio requires significant work across many functions. One of the most important areas is operational due diligence. Trying to gain a detailed understanding of a service provider before engagement is a multi-layered process — and a critical one. When appointing asset managers, your operational due diligence process helps you understand their investment strategies, structure, resources, policies, systems and other essentials.
When conducting due diligence reviews, our primary focus is to help you distinguish well managed asset managers and other service providers such as custodians, from those that potentially expose you to increased and unnecessary risks and costs. We can help you assess these providers and support you with risk mitigation.
A global insurer and asset manager was looking for operational due diligence support for its portfolio of more than 110 third-party asset managers.
An internal audit uncovered a need for robust operational due diligence and oversight for external asset manager relationships. This included an analysis of governance structures, corporate factors, company reputation, compliance, operations, and environmental, social and governance (ESG) capabilities. The client also wanted a risk scoring system to highlight areas of potential concern.
The operational due diligence provider needed the scale and expertise not only to handle a significant number of asset managers but also to deal with the complex nature of the client itself.
Working closely with client stakeholders, we were able to demonstrate a high level of professionalism and technical ability.
The combination of various operational due diligence products ensured the client was able to meet its timing and budgetary requirements.
Our existing database of operational due diligence reports was of significant use to the client, informing decision-making on legacy and new external manager appointments.
Our team’s robust approach to operational due diligence for all types of managers globally also set us apart.
US $16.2 trillion in global assets under advisement1
US $548 billion in global assets under management2
More than 11,900 investment strategies rated3
More than 3,000 asset managers rated4
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