Sovereign Wealth Funds Solutions

Sovereign Wealth Funds

Providing the tools to improve outcomes and increase transparency.

Challenges

Sovereign Wealth Funds (SWFs) face many of the same challenges as any institutional investor – diversifying their holdings around the globe to reduce risk, accessing new revenue streams, driving long-term capital growth and investing both opportunistically and strategically. This requires that SWFs be well-informed about both local and global opportunities – across all asset classes – armed with data that reaches far beyond traditional performance measures.

Meeting the Challenge

eVestment offers analytic and portfolio management tools that support finding the optimal mix and allocation of funds for portfolios. eVestment provides a wealth of data from both traditional and alternative assets and the ability to research assets, back-test portfolios and create pro forma portfolios. With the right data, SWF CIOs can be confident that they are meeting fiduciary responsibilities by selecting the strongest investment options – and that they understand the risk, performance and liquidity impact to their portfolio. And, with the ability to easily generate reports, graphs and charts, ongoing monitoring of managers and communication with trustees/directors can be greatly enhanced.  

Solutions and Uses

Source New Managers

  • Screen across 33,000+ active investment vehicles using 2,800+ unique characteristics for traditional and alternative investments including qualitative information
  • Cross-check your consultant recommendations against what other investors are screening for to find managers you may not have known about
  • Ensure potential manager holdings are varied when compared against others in your portfolio by conducting an active share overlap analysis

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Monitor Existing Managers

  • Compare managers against peers using numerous industry standard calculations
  • Know if the fees you are paying are commensurate with performance — and if those fees are competitive among other managers
  • Dig deeper to see how active your manager really is and what is contributing the most to success or failure with attribution analysis

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Break Down Performance with Holdings Analysis

  • Understand the impact of security, sector and regional decisions as well as style, timing and activity components – quickly determining the manager’s strengths and weaknesses
  • Evaluate attribution against a new and unique peer group relative view — think peer group “benchmark” based on actual and aggregated holdings — or compare against a specific active manger
  • Assess attribution analysis for hundreds of managers at once — no need to import data with reports in less than a minute 

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Create Reporting for Constituents

  • Create made-to-order, reports for stakeholders by dragging and dropping tables, charts and narrative text blocks into one of many layout options
  • Choose from our library of existing templates with the ability to customize reports by adding your  logo and colors
  • Export fund and portfolio reports to PDF 

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Construct and Optimize Portfolios

  • Construct, analyze and simulate active or pro forma portfolios using the Efficient Frontier method
  • Add potential managers to your existing portfolios to see how they would have performed
  • Track liquidity to view upcoming redemption possibilities and fees associated with those redemptions

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Manage Risk

  • Understand portfolio risk is for both normal and non-normal distributions using traditional and fat-tailed frameworks
  • Assess both risk and upside using a returns-based model
  • Utilize an award-winning portfolio risk solution built in partnership with FinAnalytica
  • Test your portfolio under pre-defined or custom market conditions and shock factors

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Conduct Advanced Peer Analysis

  • Leverage a web-based, peer-holdings database to compare your manager's portfolio to the average portfolio in a universe
  • See how closely your manager is adhering to stated philosophies 
  • Enhance performance and holdings overlap analysis

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Track Industry Flow Trends

  • Understand which types of products are in or out of vogue
  • Track which kinds of firms are investing in what kind of products and where
  • Learn if the funds in your portfolio are moving ahead of market shifts or if you need to change your allocations to keep up

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“Pension fund and Sovereign Wealth Fund assets under management are growing quickly despite a global decline in equity capitalization. SWFs have diversified across all asset classes with increasing allocation to alternatives as well as to emerging and frontier markets.”
The Sovereign Wealth Fund Initiative

Whitepaper:

Three Ways to Take Charge of Your Fiduciary Responsibility

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