Senior Investment Risk Analyst
Our Client
Established over 80 years ago, our client is a leading independent global asset management firm.
The company provides its institutional, retail and high net-worth clients with access to skilled investment professionals representing a broad range of asset classes, including equities, fixed income, property and private capital.
Based in London, they are one of Europe’s largest investment managers, with over £60 billion assets under management (as at 30 June 2013) and employs around 1,100 people worldwide.
Investment Risk Team/Risk Function
The Investment Risk team which is part of the risk function is concerned with understanding client expectations and ensuring the fund risk profile reflects these expectations. Thus the fund profile, overall level of risk and the composition of that risk is measured, analysed and monitored by the Investment Risk team to ensure it is consistent with client expectations. Furthermore, as part of the process, understanding the fund manager views and convictions are crucial to ensure alignment with the fund aim and risk profile
The investment risk team is part of the risk function that has been designed to be functionally independent from the portfolio management process, and forms part of the “second line of defence” across all funds. Whilst independent by reporting line, the Investment Risk team is located physically close to the majority of fund managers which is designed to maximise the benefits of independence and good communication/interaction with the fund managers on an ongoing basis. There are strong formal oversight and escalation mechanisms in place with regular risk meetings with fund managers chaired by senior investment or risk personnel and a monthly Investment Performance and Risk Committee attended by senior investment and risk personnel.
Overview of the Role
To monitor and analyse the risk on a variety of equity funds, hedge funds including fund of funds/funds of hedge funds. Ultimately the aim of the role is to ensure fund risk profiles reflect client expectations. This is achieved through working with fund managers on a regular basis to help them manage risk either through direct 1-2-1 meetings or through the oversight meetings. This will include analyzing fund risk profiles, explaining risk information, pro-actively interacting with fund managers and others, dealing with queries and ad-hoc analysis requests. There is a requirement to escalate concerns and highlight the levels/split of risk to senior management including the Head of Investment Risk. The nature of the role demands a strong understanding of asset pricing and risks and an ability to communicate effectively with fund managers, senior managers and other business support functions such as sales and marketing. A strong understanding of fund risks and risk systems as well as the strengths and weaknesses of them is a must. There will be shared responsibility for reporting to different committees and boards and client due diligence meetings. Strong candidates will posses excellent communication/ interpersonal skills, a strong understanding of risk models and different investment processes combined with self sufficiency and initiative. Significant experience of dealing with fund managers and identifying key risks across a range of investment styles both in long only equities and hedge funds is expected.
Main Duties and Responsibilities
- Responsibility for analysis of regular risk attribution reports for assigned funds (Equities, Hedge Funds) for use by the Fund Managers, Head of Investment Risk and the CRO, and other interested users of the data such as senior management, marketing, and compliance
- Provide oversight reporting for all assigned funds to senior management teams – highlighting areas of concern.
- Escalation of issues to Head of Investment Risk and other senior management
- Work with Fund managers in regular 1-2-1 (independently leading meetings) or oversight risk meetings covering all aspects of investment risk to help manage risk with the ability to manage these meetings and
- Present to prospective and existing clients on investment risk, committees and boards as appropriate
- Contribution to the development of fund risk analysis
- Build and maintain relationship between the Risk team and other business support teams.
- Production of adhoc reports for the business, focused on risk issues in the prevailing markets.
- Respond to direct requests from Fund Managers and proactively interact with them
- Assist IT to develop new systems/feeds and enhance existing feeds. This may include investigating the data requirements for new instrument types, sourcing this data and testing the risk output.
- Assist the team in suggesting new analytics that will be beneficial to Fund Managers and senior management in the understanding of investment risk.
- Working closely with other members of the team, providing mentoring and technical support, as appropriate.
Technical Skills Qualifications Required
- Educated to degree level or equivalent
- IMC and/or CFA is desirable
- Significant experience of working in the risk management function with an asset management company (min 5 years plus)
- Significant risk management experience and in particular extensive equities and hedge fund risk experience and dealing with fund managers, senior management, client presentations and other oversight functions such as committees and fund boards.
- Technical skills:
- Strong quantitative skills
- Excellent knowledge of derivatives (types, valuation/pricing, risks)
- General knowledge of the equity funds, hedge funds markets (styles/strategies). Detailed knowledge of risk models and concepts such ad tracking error, VaR, and stress testing methodologies together with an appreciation of their limitations
- Working knowledge of RiskMetrics, Barra Aegis, style research, finanalytica or similar systems beneficial.
- Advanced Excel and IT skills including strong knowledge of Macros desirable
Competencies Required
- Team orientated
- Excellent communication skills, both written and spoken
- Ability to plan and organise workload to perform both routine and adhoc tasks
- Proactive and self sufficient
- Ability to build strong working relationships with internal clients at all levels
- Ability to work closely with external software providers as and when required
- Ability to use initiative and influence a variety of stakeholders across all levels of the business
- Excellent attention to detail
- Strong knowledge of long only and hedge fund investment styles
- Ability to build relationships with key personnel such as fund managers, distributions and senior management
- Ability to assimilate knowledge quickly with a desire to improve knowledge of all of the businesses products/funds
- A flexible approach with the ability to think laterally
- Excellent analytical skills, with the ability to present detailed analysis in a clear and concise manner
- High degree of numeracy
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