…to the standard benchmarking by which investment managers’ performance and added value are normally evaluated. In this article the authors describe a solution developed by NN Investment Partners.
Insurers’ balance sheets have many complexities that cascade down to the management of their assets. These intricacies call for a “buy-and- maintain” approach and adherence to a broad set of investment restrictions, accounting considerations and regulatory objectives.
Consequently, comparisons of the portfolio’s performance with standard benchmark indices have limited use in assessing the added value of the portfolio managers overseeing the investment mandates. How, then, can the insurer objectively determine whether its asset manager is doing a good job?
Read the entire article by Sam Taylor, Willem van Dommelen and Gijs van Oostrom under Download.