Introduction
Performance is the result of intelligent risk management. At Bellevue Asset Management risk management is an integral part of the entire investment process. Our risk management and controlling process serves to realize the following four goals:
| Performance analysis | Ensure a competitive performance relative to the underlying benchmark and to peers |
| Risk analysis | Compile and analyze all risk parameters necessary to elucidate risk and performance contributions |
| Investment Governance | Ensure compliance with external and internal investment requirements |
| Operational Risk | Ensure quality control of asset management operations throughout the entire value added chain in portfolio management |
Performance Analysis
A team of risk managers and product specialists measure and periodically analyze the performance data of our portfolios over various periods in absolute terms, relative to benchmarks and peers, as well as in risk-adjusted terms. Performance reports are discussed with the portfolio management teams and executive managers at least once a month.
Risk Analysis
Risk measures such as VaR, volatility, tracking error are appraised at least once a month (ex ante and ex post) and discussed with the respective portfolio management teams. Our risk management specialists make use of a proprietary performance and risk analysis tool that was jointly developed with SwissQuant® (a spin-off of the Swiss Federal Institute of Technology) and is compliant with the latest standards.
Investment Governance
Our investment governance processes are designed to ensure that our investment activities are in accord with external and internal investment guidelines. Legal and regulatory requirements essentially comprise Luxembourg and Swiss investment fund laws and other legally binding rules and regulations. A distinction is made between active and passive breaches of stipulated requirements. Active breaches result from incorrect investment decisions by the portfolio management team while passive breaches result from movements in market prices without the active intervention of the portfolio management team. Investment governance processes ensure that such infractions are in most cases prevented or, should they nevertheless transpire, that they are quickly rectified.
Operational Risks
The Risk Management Team monitors the quality of the critical business processes and evaluates indicators pertaining to the major risks and process performance through all involved internal and external parties including the Fund Administrator, Transfer Agent, and the Management Company/Directors Office. Insights gained from day-to-day business activities are evaluated to ensure continual optimization and improvement of operational efficiency across the entire value added chain.