A tailor-made process built to provide investors with a diversified and robust exposure to the complex alternative investment universe.
The process is built around six committees:
- The Quarterly Tactical Asset Allocation Committee (CAAT),
- The Fund Selection and Monitoring Committee (CSPF),
- The Monthly Investment Committee (CIM),
- Two Risk Monitoring Committees (CRM), bottom-up and top-down,
- The market Monitoring Committee (CSM).
Continuous risk management
UFG Alteram has identified three major risk factors linked to funds of hedge funds:
- Funds’ deviation from their original strategies (a.k.a. “style drift”),
- Deterioration of a fund’s performance in relation to its peer group and relevant indices,
- Extreme risks, such as bankruptcy and fraud.
In order to limit these risks, the Investment Team and the Head of Legal and Operations perform continuous monitoring at all stages of the process (due diligence, internal control, fund selection and monitoring, etc.). These operations are supervised by the CIO.