Firm Profile: Global Insurance Company
Client Since 2009
This global insurance carrier is one of the largest institutional investors in the world with nearly $500 billion in general account assets. As a division of the parent company, the investment alternatives group manages a portfolio of hedge funds. Before becoming a client, the team performed its quarterly analysis and monitoring using Excel alone, with only one person specializing in the creation of the tear sheets presented to the investment committee. The alternatives group soon came to realize the need for a more advanced tool for portfolio construction and modeling, risk monitoring, as well as reporting. It evaluated other options, but found eVestment the most capable provider – possessing the tools to meet all its requirements, in addition to being the most established provider in the space.
Using eVestment’s Analytics solution, the carrier is able to conduct their ongoing monitoring and analysis quickly. The vice president of alternative investments said, “Analytics helps us easily see what the addition or subtraction of a new fund will do to our portfolio. It’s a quick way to generate a return stream without having to run a bunch of Excel calculations.”
Detailed Tear Sheets
The team also uses Analytics to create tear sheets to present to their investment committee. “We use the system to generate manager profiles which include both quantitative and qualitative information – factor analysis, upside capture, downside capture – many different statistical charts. It’s also easy to include comparisons of managers by building a peer universe. We would never have had these tear sheets if not for eVestment,” said the vice president.
Significant Time Savings
The vice president mentioned the automation component of the reporting as a key benefit. “We can really speed through the quarterly reporting using eVestment. We have also implemented functionality to assist in the creation of a 24-page sector review report which has given us significant time savings over the more manual process we used to employ using Excel,” she said.
The group incorporates eVestment’s advanced risk analysis into its processes. “RiskPlus offers us something very unique that we weren’t able to see before. We can run stress tests, as well as see which managers are coming up as diversifiers and which are contributors to risk. It has become a part of our broader analysis and is a good portfolio management tool,” said the vice president.
When asked if there was a time when eVestment went above and beyond, the vice president replied, “Yes! Probably about 400 times.” “When I was first starting out the support team taught me all kinds of tips and tricks, but it was really the responsiveness that impressed me. Client service was phenomenal about helping me meet my deadlines and getting things done,” she said. In conclusion, she said, “Every allocator would be well served to have a system like this.”
“Analytics helps us easily see what the addition or subtraction of a new fund will do to our portfolio. It’s a quick way to generate a return stream without having to run a bunch of Excel calculations.”