Analytics

IAM Advisory believes in active fund management and uses technology to create an environment in which the structure of an investment portfolio, the underlying investment managers and funds can be made to work more effectively together for clients.

We have developed a cohesive and comprehensive approach based on inhouse proprietary software, to mandate and inform managers, encouraging them to think independently and even out-perform their own expectations.

Risk-adjusted returns

The AMps (Active Management Performance Standards) approach and software has a successful, long term record of producing superior risk-adjusted and real returns when compared to approaches using market benchmark relative, peer group and passive portfolios. It enables risk to be carefully modelled both in the process of portfolio construction and seamlessly in the subsequent risk and performance monitoring process. All returns are looked at net of all fees, as cost control is considered vital.

Risk limits

IAM has developed and refined the AMps approach and software for over 35 years. It contributes to all elements of structuring, monitoring and controlling client investment portfolios. In simple terms, it provides the full range of investment opportunities available within a client’s risk profile limits. Unusually it enables both market relative and real (inflation adjusted) rate of return targets to be met. The approach consistently outperforms and is to be contrasted with standard approaches that focus on and around static market benchmarks and peer groups.

How we use AMps

AMps is used in:

• Portfolio Construction - to model and set customised risk guidelines and investment objectives for the total client portfolio and, separately, for the underlying fund managers in a way that ensures an optimal active portfolio structure for the overall account.
• Monitoring - to seamlessly monitor the total client portfolio and managers’ performance within the flexible risk ranges that are set. This enables the ‘active’ contribution to be continuously ‘graded’ and the risks to be controlled.
• Strategy - to provide continual feedback on opportunities missed and the ability to model alternative solutions.

The approach directly and successfully addresses one of the central problems in modern investment management, being the ever-increasing reliance on market benchmarks, market peer group comparisons and standard risk buckets and tends to result in passive or semi-passive investment management strategies.

AMps helps ensure active management, customised to the client, which can significantly contribute to investment performance net of fees.