global asset management consultants deck - final june 2018...global asset management consultants g a...

William F. Gibson David E. Kushner Daniel P. Martin

March 6, 2018

Global Asset Management Consultantsg am c

Copyright 2018 © - GLOBAL ASSET MANAGEMENT CONSULTANTS LLC


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About GAMC

FIRM GAMC delivers consultancy advice to asset managers. The principals are seasoned industry practitioners with broad knowledge, deep experience, and keen insight.

MISSION

GAMC helps identify opportunities and create efficiency in order to achieve strategic initiatives while differentiating their businesses.

SERVICES

GAMC solves problems and creates competitive advantages. We offer insight, ideas, and implementation capabilities to identify alternatives, provide actionable recommendations, and assist in execution.

STRENGTHS Each GAMC principal is a seasoned executive with at least twenty-five years of hands-on experience. Each has "been there" and "done that" and knows not only the pitfalls and roadblocks, but also ways to create competitive advantage.

APPROACH GAMC works across boundaries – organizational, cultural and political – to build seamless and firm wide solutions. We help our clients to seize and profit from opportunity.

COMMITMENT GAMC is committed to offering objective and independent advice, timely and accurate analysis, and access not only to our team of principals, but also to the group’s extensive industry contact network.

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Industry Disruption



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Industry Opportunities

“It is not the strongest of the species that survives, nor the most intelligent. It is the one that is most adaptable to change.”

- Charles Darwin

In a changing world, GAMC exploits opportunities while dodging roadblocks and potholes to benefit the entire organization.

§  Business Models §  Operating Models §  Shared Services §  Front/Back Office Alignment



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GAMC‘s extensive intellectual capital and industry knowledge allows us to partner with clients to develop solutions on critical business challenges.

Unparalleled Industry Expertise

M&A Planning and Analysis

Business Growth

Performance Metrics that Define Successful

Outcomes

Uniquely-Qualified Industry Experts CxO experience (25+ years per expert)

Ideas -  Marketing Campaigns -  Distribution Opportunities -  Operational Issues

Broad Areas of Expertise -  Operations -  Marketing / Distribution -  Asset Allocation -  Portfolio Construction -  Technology for business

benefit

Front / Back Office Efficiency

-  Cost Efficiency -  Processes -  Procedures

Compliance and Risk



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GAMC Principals

Will Gibson is a senior operations and financial professional with extensive experience leading complex, multi-national firms. He specializes in transaction processing, asset management operations, and alternative financing strategies. Will has successfully created, led, and integrated operations, finance, client services, risk management, systems, and compliance solutions throughout these multi-national companies.

Education: Cornell University: M.B.A. in Finance; M.P.A. in Marketing Michigan State University: B.A. in Political Philosophy, Phi Beta Kappa



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David Kushner is the former CIO of two leading public pension plans. He has served in (and has intimate knowledge of) both the “buy” and “sell” sides of the business with experience that includes investing in alternatives (including PE, VC, HF, RE), fixed income, global equities, and emerging markets. His experience includes asset liability modeling, asset allocation, portfolio management, security analysis, compliance, operations, risk management, sales and distribution. David’s core competencies include strategic planning, business partnerships, leadership and team building, board experience and manager search and analysis.

Education: University of Florida: B.S. in Business Administration

Chartered Financial Analyst (CFA) Designation

GAMC Principals



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Dan Martin is a senior technology business and sales professional with more than 30 years’ experience. He has led major transformation projects for Financial Services, energy and Hi Tech companies. Prudently entering sales after a corporate acquisition, he twice led global account teams to double revenue within two years. He has deep international experience in an eclectic range of industries and functional areas.

Education: Georgia Institute of Technology: Bachelor of Mathematical Sciences Master of Information and Computer Science Ph.D. (Information and Computer Science)

GAMC Principals



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GAMC’s Engagement Approach

Assess Current

Capabilities

Identify Strategic Options

Build Consensus

Recommendations/ Planning Roadmap

Execute

Determine goals and needs

Understand current state stakeholder perspective

Evaluate best in class options and

solutions

Involve participants to assure desired

outcome

Develop agreed plan

Assist in execution

Make sure it delivers the benefit and start over



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The GAMC Value Proposition

Philosophy: Combination of strategic view with the capability of managing delivery and transition.

Process: Customized, objective, independent advice based on an in-depth understanding of your needs and the underlying business.

People: Broad and deep experience within the industry and its key centers of influence.

Performance: A track record of producing successful outcomes.

Plus: Comprehensive span across front office, back office, infrastructure, operations, risk management, compliance.

Pizzazz (Ideas): Creativity. Innovation. Best practices. Ability to work with people to bridge gaps and achieve consensus.



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How Can We Help You?

THIRD PARTY SERVICES •  Custody and Fund Admin – evaluation,

benchmarks, contracting, replacement •  Cloud computing services

TECHNOLOGY •  Application Analysis … Build vs. Buy •  Business Process Design and Architecture •  Data Integration/Migration/Management •  Change Management •  Risk and Compliance

OPERATIONS •  Capability assessment (inclusive gap

analysis, end state scenarios, transition) •  Operating model (insource vs. outsource)

INVESTMENTS •  Strategy •  Approach

•  Instruments (global equities, alternative, emerging, fixed income)

•  Asset / Liability management •  Portfolio Construction

(Fundamental & Quantitative)

MARKETING / DISTRIBUTION •  Assessment evaluation •  Product trend and demand trend

•  Perception studies •  Entry strategy

•  Customer experience •  Performance management

APPENDIX: CASE STUDIES




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Case Study: Front/Back Office Synergy

SITUATION

A $45 billion asset manager felt that its growth potential was being constrained by custodian shortcomings. However, the back office management team was reluctant to consider changes and opposed any discussion about shortcomings.

APPROACH As an objective “outsider,” we worked with both front and back office to assess the situation. We confirmed that the custodial system was outdated and, with the back office, we identified the advantages of an update in terms of improved operating efficiency and responsiveness together with reduced reporting time and fewer errors. This opened the door for a replacement decision.

RESULTS

With front and back office buy-in, we captured the business requirements and prepared an RFP for custodian services. We worked with the client in evaluation of the responses and selection of the custodian. We assisted with contractual negotiations and provided project management aid in the transition to a new platform.



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Case Study: Infrastructure-Enabled Growth

SITUATION

A $9 billion asset manager wanting to expand through acquisition was constrained by infrastructure limitations. Their systems were well behind the market. Additionally, there was no integrated securities processing system.

APPROACH We interviewed each investment manager, portfolio manager, and trading desk to understand the breadth and scope of the firm’s investment strategies. Subsequently, existing applications and processes were examined to see how well they met, enhanced, or impeded the strategies. At the same time, custodian service provider capabilities were evaluated. In the end, an ideal environment was identified and documented.

RESULTS The accounting system was replaced; one custodian bank was selected and all assets were migrated. Regulatory reporting, performance analysis, and portfolio attribution processes were upgraded. A trade-order entry system was installed and integrated, as was a new compliance system. Two acquisitions were completed; AUM increased to $110 billion.



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Case Study: New Product Launch

SITUATION

An asset management organization with a 30-year record as a “Dividend Growth” manager was interested in growing the firm by adding a small growth product. They wanted to understand the perception that the market has of the two strategies and the organization.

APPROACH We created a questionnaire to identify institutional investors’ perception of both products and the firm. We spoke with several senior level individuals at various types of organizations, as well as some existing clients of the firm. We discovered that the organization was viewed favorably, but that many viewed “Dividend Growth” as uninteresting, while “Growth Dividend” was seen favorably. There was a favorable view of the small growth strategy.

RESULTS We recommended a changed description ("Growth Dividend”) generating favorable results. We informed the client that it could take several years of returns to get institutions interested in the small growth products. Although respondents who “knew” the firm had a favorable opinion, most of the respondents had never heard of the organization. Therefore, we recommended that an experienced marketer be hired to develop a growth plan.



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Case Study: Lift Out of Fund Administration

SITUATION

An asset manager wanted to review options for more efficient in-sourced and outsourced solutions. If possible, they wanted a solution in which the back office staff retained employment.

APPROACH With the client, we defined an operating model and boundaries of the business processes that were not “core.” We jointly reviewed the financial plans and capabilities of a variety of in-sourced staff and outsourced vendor options concluding that a “lift out” (i.e., sale and transfer of internally-used technology and staff to a third party) was feasible.

RESULTS The middle and back office team and associated technology was moved to a leading funds administration company where they formed the foundation for the middle and back office service offering which is still a market leader. The client’s costs were significantly reduced.



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Case Study: Market Perception

SITUATION

A $30 billion asset management firm sought answers to questions from clients and prospects: How is the firm perceived by the market? Who does the market view as its core competitors? What market needs are currently not being met by current providers?

APPROACH We developed a robust sample of current and former clients and high-priority prospects and conducted phone interviews to understand perceptions of the client’s areas of strength and challenge and the pockets of current and future market demand. The market intelligence gathered provided the client with improved knowledge of how it is perceived in the market, the key product trends, and a solid appreciation of the competitive landscape.

RESULTS The client better positioned its overall capabilities to the market, most notably in its marketing collateral. Leveraging the intelligence, our team also recommended that the client develop a new investment product for one of the identified high priority market segments.



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Case Study: Outsource to Fund Administrator

SITUATION

A large hedge fund wanted to restructure its operating environment to reduce operating costs while simultaneously enhancing reporting capabilities. It wanted to make these changes without an adverse impact on its operational capabilities.

APPROACH We evaluated the fund’s operational processes and capabilities identifying areas that could be improved. We reviewed the fund’s custodian bank and fund administrator (one bank served both functions). The review revealed that the service provider had the ability to absorb additional work. The technology platforms being used by the fund and its custodian were analyzed and compared.

RESULTS We recommended that the fund and its fund administrator work together to move the fund’s internal infrastructure, operations personnel, and operational processes to the administrator. We worked with teams from both the fund and the fund administrator to negotiate financial terms of the transaction and accompanying Service Level Agreements. We designed the migration project plan and acted as project manager to lead the migration.



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Case Study: Outsource Accounting &

Administration SITUATION

A mutual fund complex utilized an operating model featuring vertical integration of all functions in the complex. However, it also realized that outsourcing of fund accounting and administration functions could potentially provide business benefit through improved efficiency and effectiveness. Because of its organizational history, it did not have skills internally needed to evaluate the benefits and risks of outsourcing.

APPROACH We worked with the client, which managed more than 200 funds, to select a subset to consider for the initial outsourcing. We analyzed the functions performed by the fund complex to identify deficiencies and opportunities that could be addressed by an outsourced service provider. We conducted a series of reference evaluations with other fund complexes that had undergone similar projects to illuminate possible pitfalls. We worked with the client to achieve consensus on the approach and developed a migration plan for the selected funds.

RESULTS We worked with portfolio management, technology, operations, and risk units on the migration. We also coordinated the migration plan of the outsourced service provider to ensure transition. The fund complex views the project as a success and a one-year testing phase is underway. If, as expected, all goes well, migration of more funds and share classes will follow.



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Case Study: Rationalize The Business Model

SITUATION

An insurance company-owned investment manager ran a multi-boutique structure that included a mutual fund complex, the proprietary assets of the insurance company, a Taft-Hartley-oriented manager, a retirement services provider, a private equity manager, and a hedge fund complex. The investment manager needed to rationalize its infrastructure without damaging the distinctive nuances of each boutique.

APPROACH We analyzed the processes and activities of each of the investment boutiques. We then examined the custodial relationships and the vendor contracts for every securities services provider and determined that a unified software and custodial relationship was feasible and would be both efficient and effective. We negotiated with the separate boards of directors for each mutual fund in the complex and with other independent boards to get agreement to proceed and developed the associated migration plan.

RESULTS We worked with each boutique to turn agreement “in principle” into agreement “to proceed.” We negotiated a series of “most favored nation” contracts with custodians. With the investment manager, we identified a suite of applications and, with IT, identified the best solution for each boutique. Avoiding a monolithic approach not only enhanced credibility of the manager, it resulted in consensus with the boutiques, eased migration, reduced costs, and improved service levels.



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Case Study: Growing The Business

SITUATION

A client had a 20-year track record investing in Class B Multi-Family Value-Add Real Estate. Historically, the firm raised money on a deal-by-deal basis but recently lost several investment opportunities because it did not have “cash in the bank” at the time an offer was made. It wanted to raise its first institutional quality fund, but was not familiar with the institutional market.

APPROACH Acting as a potential investor, we assessed the business and suggested changes and upgrades to marketing materials and the data room. We updated the organization chart to include positions that would be added as the firm grew. We identified strengths and weaknesses as part of a plan to address and fix areas in need of immediate action. We recommended and assisted in engagement of a placement agent to market the fund.

RESULTS The fund started getting good reception in the pre-marketing stage. The RFI for placement agent was distributed. Marketing materials now reflect institutional quality. The data room is complete and received a good analyst review. The overall message is much more focused.



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Contact

Will Gibson +1.203.527.0701 (o) +1.203.644.3600 (m) [email protected]

Dan Martin +1.805.708.8027 [email protected]

David Kushner +1.925.922.9877 [email protected]

……Capable of Advising on Your Most Significant Challenges

global asset management consultants deck - final june 2018...global asset management consultants g a...

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