German Corporate Pension Case Study

Firm Profile: Corporate Pension

Products: Analytics, Holdings Analysis

eVestment spoke to a representative from the pension management team of one of the top ten largest corporate pensions in Germany. The purpose was to discuss how they utilise eVestment. This case study provides an example of the rigorous initial due diligence institutional investors conduct through our platform and the importance of managers submitting complete and accurate data.

eVestment: When you are looking for new managers, what data do you focus your research on?

Client: As we are a benchmark-oriented investor we start our research based on a strategy’s preferred benchmark. Qualitatively we also look at a strategy’s inception date, investment process, and personnel details. Quantitatively we review excess returns (1, 3 and 5 years), product total AUM, information ratio, and tracking error.

eVestment: If any of these data points are missing from a manager’s profile, how would that impact your research?

Client: If there is no data provided in eVestment for one of these fields, it is highly unlikely that we would take the strategy into account in our research. Therefore we encourage all managers to upload consistent and complete data.

eVestment: Can you tell us about a recent search you conducted, and how you utilised eVestment in your process?

Client: eVestment was very helpful for our latest search for a Chinese equity strategy. We invited just three managers for a competitive pitch, as they provided the most data on the platform (track record, past performance, information on the company, and the investment process etc). Furthermore, we recently used eVestment to explore available equity strategies of the largest and most experienced passive equity managers.

eVestment: Can you give us an example where data issues impacted your search?

Client: Managers in a recent USD investment grade search failed to upload accurate performance data so that they could not be considered in the selection process.

eVestment: Once you have a short list of strategies, what is your next step?

Client: The data points noted earlier are our starting point, but once we have created a short list we’ll take a deeper look at the full eVestment profile. If we’re interested, we’ll reach out directly to the manager.

eVestment: In summary, what would you say is the main benefit of adopting eVestment?

Client: Using eVestment has allowed us to quickly set up mandates and the tool has proven effective for both selecting new managers and making peer group comparisons for existing managers.

“Using eVestment has allowed us to quickly set up mandates and the tool has proven effective for both selecting new managers and making peer group comparisons for existing managers.”

How Can eVestment Help Your Firm?