Business Situation
A large pension fund with a diversified global portfolio faced mounting pressure to deliver consistent returns to its beneficiaries while navigating complex macroeconomic conditions. With in-house teams already stretched thin, the fund required external expertise to:
- Conduct in-depth global market and sector research
- Provide valuation support for listed investments
- Strengthen risk management and scenario analysis
- Ensure compliance with investment policies while maintaining cost-effectiveness
SGA Approach
Initial Setup
- Designed a customized research framework aligned with the fund’s investment policy and long-term objectives
- Identified key global sectors and geographies with strong growth potential for capital allocation
Execution Phase
- Conducted bottom-up equity research covering company financials, valuation multiples, and earnings forecasts
- Delivered macro– and sector-level research notes, highlighting risks, opportunities, and asset allocation strategies
- Developed risk-adjusted return models and scenario analyses for different economic cycles
Ongoing Engagement
- Produced quarterly performance attribution reports with actionable insights
- Provided investment committee support, drafting presentations and briefing notes to aid decision-making
- Acted as an on-demand research partner, scaling resources during peak decision-making periods
Key Takeaways
- Stronger Decision-Making: Enabled the pension fund to allocate capital more effectively across global markets
- Risk Management: Improved downside protection by integrating scenario-based stress testing into investment decisions
- Operational Leverage: Reduced the internal research burden, allowing the client’s investment team to focus on portfolio strategy
- Long-Term Value: Delivered consistent, data-backed insights that helped safeguard beneficiary interests and improve portfolio resilience