Risk control is paramount. Whilst conventional risk analysis concentrates on market volatility and liquidity, we consider seven additional major risk headings. These risk areas are rarely addressed.
AMps, our proprietary approach to determining the asset limits, provides a key objective bridge between the subjective, but structured, initial review process and the investment guidelines.
Investment guidelines are the main tools to control risk on client portfolios, and are used at both the total account and individual manager levels. They are detailed and explicit covering all aspects of exposure. Once set, guidelines are rigorously monitored through our monthly reporting system and any breaches are investigated.
The setting of appropriate investment guidelines is a demanding and problematic area. It is an area that is often missed or treated as peripheral - we regard it as central. We have significant experience in setting guidelines that successfully control risk, whilst maintaining the flexibility and dynamism necessary to achieve the best returns within the opportunity set available.