Risk management
Controls by portfolio management team
FundQuest has developed a proprietary and sophisticated tool of risk management, which is designed to control the ex-ante risks of the portfolios. Furthermore, an ex-post control of risks is also analysed for the portfolios as well as for the different individual holdings within the portfolios.
Moreover, we control risk using model portfolios within both manager selection and asset allocation.
Controls by internal risk control team
FundQuest has a dedicated risk control team that focuses on risk issues for all its entities. FundQuest risk managers coordinate with BNP Paribas' global Risk Management department, via the risk management teams of BNP Paribas Investment Partners.
These managers are in charge of monitoring the qualitative and quantitative risks of the portfolios as well as respecting the regulatory ratios (diversification ratio, legal ratios etc.)
In addition, a control procedure is implemented in order to limit the concentration risk for investments within the portfolios managed by FundQuest.
An internal methodology of scoring provides guidance for each selected manager with regard to its asset class, the cash position, the degree of structuring, and the financial status of the related management company. This guidance helps a view to be determined on the limits of the asset exposure to a particular asset manager or strategy.
Controls by the internal compliance manager
Finally, a compliance and internal control manager is in charge of the periodic and permanent control of the fundamental aspects of monitoring.
These controls are further accompanied by the regular internal auditing of the BNP Paribas group as well as the external auditing of the appropriate product wrappers.
Controls by operational due diligence team
Our independent operational due diligence team analyses the managers’ risk controls, as well as operational and business risks. The team can veto both new and invested managers, resulting in their de-selection or redemption.
