phocion investments july 2015
TRANSCRIPT
PILLARS TO YOUR PERFORMANCE AND OPERATIONS
July 2015
Ω Pillars for your Performance and Operations
Raise standards within the investment industry, Phocion Investments
will never give any insincere counsel
Honesty
Accountability
Excellence in service
Mission Statement and Core Pillars
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Ω Pillars for your Performance and Operations
Phocion has been serving clients since 2010
• Service clients in areas of performance, due diligence and
compliance
• Independent and employee-owned
• A team with complete investment industry experience
• Three partners with over 55 years of combined experience
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Ω Pillars for your Performance and Operations
Ioannis Segounis, B.Eng, MBA, CFA, CIPM
Founder and Managing Director
Industry Experience: Performance and Research
Career began: 1999
Joined team: 2010
Kosta Segounis, CPA, CA, CFA
Managing Director
Industry Experience: Compliance and Operations Due
Diligence
Career began: 1995
Joined team: 2015
Management Team
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David Rowen, CFA, FRM
Managing Director
Industry Experience: Investment Management and
Research
Career began: 1994
Joined team: 2015
Ω Pillars for your Performance and Operations
Why Performance Matters?
• Window into portfolio management
• A stricter regulatory climate
• Increased demand for transparency in performance reporting
• Reputational risk
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Ω Pillars for your Performance and Operations
Performance Evaluation Services
Assist clients in gaining greater insight into their performance
This is achieved by:
• Detailed quantitative analysis into returns
• Benchmark evaluation
• Complete qualitative analysis into the strategy and the decision making process
• Determine the underlying causes of under / out performance
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Ω Pillars for your Performance and Operations
Performance Operations Consulting
Assist in system selection and implementation processes:
Three important steps:
• Guide firms to properly identify needs and requirements for system selection
• Provide a roadmap to proper implementation and avoid costly pitfalls
• Transfer of knowledge so firms become self-sufficient going forward
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Ω Pillars for your Performance and Operations
Performance Operations Consulting
Conduct a performance operations review
The steps are:
• Identify inefficiencies in daily performance measurement tasks
• Provide the controls and tools to improve the quality of returns
• Detailed reconciliation of historical performance
• Align back-office and performance operations, and introduce efficiencies
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Ω Pillars for your Performance and Operations
GIPS Consulting Services
Ensures highest presentation standards are followed which, in turn, provides clients with an edge in growing their assets and competing worldwide
Areas of focus for GIPS review:
• Policies and procedures
• GIPS Compliance GAP analysis
• Calculation methodology
• Composites construction
• Disclosures
• Presentation and reporting
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Ω Pillars for your Performance and Operations
Performance Training Consulting
Bring your firm the tools to properly understand the message behind
the numbers
Customized training services on the following:
• Performance Measurement
• Benchmarks and Composites
• Attribution Analysis
• Performance Appraisal
• Ethical Standards
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Ω Pillars for your Performance and Operations
Due Diligence Process
Background Checks
Source and Screening
QuantitativeAnalysis
Qualitative Analysis
Portfolio Analysis
Risk Analysis
Operational Analysis
Legal Review
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Ω Pillars for your Performance and Operations
What are operational risks?
Risk of a non-investment issue having an adverse impact on the pool
of capital being managed
Operational weaknesses include (but not limited to):
• Lack of segregation of duties
• Internal control weaknesses
• Lack of record keeping
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Ω Pillars for your Performance and Operations
Operational Due Diligence Services
Independent and comprehensive due diligence in which an evaluation
is performed on the investment manager’s operating practices
The process includes:
• The planning stage where a documentation review of the investment manager and
their funds/strategies is performed
• On-site review of the investment manager’s premises focusing on the manager’s
control environment and its service providers
• Detailed report identifying the strengths and weaknesses
• Periodic and annual on-going due diligence
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Ω Pillars for your Performance and Operations
Compliance Consulting
Provide solutions to improve the manager’s compliance environment in order to achieve industry best practices
They include:
• Compliance Program Review
• Development and assist in maintenance of compliance policies and procedures
• Anti-Money Laundering program reviews
• Conflict of interest reviews (i.e. personal trading, external business activities, insider trading)
• On-site support during Regulatory Inspections
• On-site Chief Compliance Officer support services
• Education and Training
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Ω Pillars for your Performance and Operations
Selected Clients
For confidentiality purposes we only provide descriptions of our clients
They include:
• Schedule 1 Canadian Chartered Bank’s Asset Management Business
• Prominent Canadian Investment Managing Firm
• Family Office Based in the United States
• UK-Based Data Provider
• Canadian Emerging Investment Manager
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Ω Pillars for your Performance and Operations
Why Phocion?
• We are an extension of our clients’ business
• Provide independence and objectivity
• Assist in distinguishing your firm
• Represent a flexible and highly-professional solution
• Keeps your firm on top of increasingly strict industry requirements
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Ω Pillars for your Performance and Operations
Who was Phocion?
• Athenian statesman from c. 402 BC – c. 318
• Nicknamed "The Good“
• Courage to stand up against popular opinion
• Avoided corruption
• Loyal to the best interests of all Athenians
• Never mistreated anyone
• Never gave insincere counsel
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Ω Pillars for your Performance and Operations
Appendix I
Biographies
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Ω Pillars for your Performance and Operations
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Ω Pillars for your Performance and Operations
Ioannis Segounis, B.Eng, MBA, CFA, CIPM
Ioannis’ knowledge and experience spans the whole spectrum of the
investment performance discipline. His dedication to bringing the best
of this evolving field to the investment industry led him to the founding
of Phocion Investments in 2010.
Ioannis previously held the position of Manager – Performance
Measurement and Attribution at Intact Investment Management where
he was responsible for building and growing the performance
functions of the firm. He was also an integral part of structuring the
performance operations at CN Investment Division,
Ioannis has earned the CFA® and CIPM® (Certificate in Investment
Performance Measurement) from the CFA Institute. In addition, he
has earned an MBA degree with a specialization in Investment and
Portfolio Management from HEC Montreal, and a Bachelor of
Engineering degree from Concordia University.
Kosta Segounis, CPA, CA, CFA
Kosta‘s vast industry experience is most notable in the areas ofcompliance and risk management. Prior to joining Phocion in 2015, heheld the position of Senior Advisor at National Bank of Canada wherehe was responsible for performing reviews of different lines ofbusiness and recommended areas for improvement. In addition heimplemented and trained National Bank personnel on due diligenceprocess of external managers – both traditional and alternative.
Prior to National Bank, Kosta held a senior management position in aconsulting firm, where he performed due diligence on a variety ofalternative managers, from emerging managers to large andsophisticated hedge fund managers following complex strategies.Further, he was also an integral part of building the compliancedepartment at PSP Investments.
Kosta is a member of the Chartered Professional Accountants ofCanada and is also a CFA® charter holder. He has earned a Bachelorin Commerce and obtained a Graduate Diploma in Accountancy fromConcordia University.
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Ω Pillars for your Performance and Operations
David Rowen, CFA, FRM
David’s industry experience is most notable in the areas of portfolio
management and equity research. Prior to joining Phocion in 2015,
David managed the wealth of high net worth investors at HSBC
Holdings plc.
Prior to joining HSBC, David launched a small cap energy portfolio
and became its Portfolio Manager at CN Investment Division. His
success at managing the small cap energy portfolio led to his quick
promotion to the position of United States Equity Portfolio Manager, a
portfolio whose assets represented 10% of the Division’s overall AUM.
Further, he was an equity analyst for two institutional securities firms
that were acquired by Cantor Fitzgerald and Canaccord Genuity,
respectively.
David is a CFA® charter holder and has the FRM® designation. He
has earned a Bachelor in Commerce from McGill University.
Consulting 1010 Sherbrooke Street West
Suite 1800
Montreal, QC
H3A 2R7 Canada
T. 514 564-9955
F. 514 286-6078
www.phocioninvestments.com
phocioninvestments.wordpress.com
Contact: [email protected]
514 564-9955
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Ω Pillars for your Performance and Operations