Target-oriented and efficient implementation of investment strategy

ECOFIN advises grant-making foundations on the formation and composition of an efficient, transparent and controllable investment organization. This provides the framework to achieving the targets set systematically and with low operational risk. The investment organization becomes a source of considerable value creation and contributes to higher grants being made in the future.

The realisation process is multifaceted. Typical ECOFIN services are:

• Formulation of specifications including tasks, areas of authority and incentive structures for individuals in charge both internally and externally and of the investment guidelines. Definition of interfaces and decision-making processes.
• Definition of asset management mandates and benchmarks: Identifying mandates and benchmarks with which the investment strategy can best be achieved using the specified asset classes.
• Advice on the choice of asset managers, assisted by our internet-based portfolio manager database (PMDB-Online®), a structured selection procedure (manager selection) and regular meetings with potential candidates.
• Advice on the choice of a custodian bank (custodian bank selection).
• Contractual arrangements and conduct of contract negotiations with asset managers and custodian banks.
• Planning and coordination of portfolio restructurings and composition of mandates (known as transition management). Assistance in cost-effective realization of investment structure (coordination of interfaces between asset managers, brokers and custodian banks; monitoring of trading activity of asset managers and brokers involved).