“Operational” Due Diligence by SwissAnalytics covers Onsite Evaluation of Operations, Legal Documents Review and Independent Verifications.

Our analysis begins with an extensive request for information requesting a broad set of documents such as service provider agreements and manuals (usually more than 10 different types of documents). These documents are complemented by dedicated proprietary questionnaires sent to the investment manager, the administrator and the custodian(s). The information is reviewed and a detailed list of questions is drafted to be addressed during an onsite visit at the manager’s premises or followed up on with any of the other stakeholders. We typically spend at least a full day onsite interrogating individual members of the organization in one-on-one interviews following our dedicated list of questions for each individual.

An integral part of our assessment onsite involves cross-referencing information between different individuals but also between the manuals and the actual execution of processes onsite. The findings of the onsite visit are reviewed once back home and followed up on with additional questions by email, conference calls with the investment manager but also the various service providers. We always seek to verify information regarding service agreements with the providers directly rather than the investment manager.

For our assessment, our analysts follow a proprietary framework comprising 80+ qualitative risk factors spanning across organizational and operational risks. Each factor is scored according to our proprietary universal set of rules ensuring consistency among the different analysts involved.

Our findings are illustrated in comprehensive reports which concentrate on the key issues by flagging the major risks. Our overall judgment is summarized in the conclusion while putting the different findings into context regarding the organization’s size and the pursued investment strategy in our elaborate commentary (10-15 pages).

Our reports cover the following topics:

  • Organization
  • Human Resources
  • Infrastructure
  • Operations Team
  • IT & Disaster Recovery
  • Operational Partners
  • Accounts and Hypothecation
  • Cash Management
  • Trading and Reconciliation
  • Portfolio Valuation and NAV Calculation
  • Financial Statements and Audits
  • Documentation
  • Communication with SwissAnalytics
  • Yellow and Red Flag Commentaries
  • Conclusion

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In the News

December 17, 2014
New White Paper: Never Underestimate Business Risks

Our latest white paper reflects on some recent news about an embezzlement case and other examples reviewed by SwissAnalytics historically which suggest to give business risks appropriate consideration.

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