Background

Many reserves managers seek to diversify their portfolios into asset classes and markets that will enhance and offer returns. Due to internal limitations of resources, infrastructure, or capabilities, they choose to outsource the asset management services to external fund managers. This decision not only impacts the investment policy, strategic asset allocation framework, and investment guidelines but also calls for a legal framework of the external managers’ mandate to stipulate the overarching conditions and expectations from both parties.

The process to onboard the external managers is rigorous to ensure that the successful firms are aligned with the interests and objectives of the client institutions.

MEFMI will conduct a workshop to equip participants with knowledge on the key considerations for hiring external fund managers, the impact of such decisions on the reserves management governance framework, and what the procurement process entails to hire such service providers.

Objectives

i. To impart knowledge on key considerations to hire external fund managers. ii. To enlighten participants on the required governance framework. iii. To enlighten participants of the legal framework. iv. To implement a framework for procurement of external fund managers.

Course Content

This course covers:

i. Asset allocation to external managers. ii. Risk and return evaluation. iii. Procurement of external managers. iv. Investment Management Agreements and Fee Structure.

Target Group

This course targets mid-level portfolio managers, risk and performance analysts, analysts who monitor external fund managers, analysts who oversee the strategic asset allocation from the front and middle offices, procurement specialists, legal officers, and internal auditors from Central Banks, Deposit Insurance Funds, Public Pension Funds, and Sovereign Wealth Funds.