THE ASK

How can we create a new asset management organisation that brings assets in-house whilst improving control and reducing management costs?

The life company wanted to establish an in-house asset management capability from the ground up, with the aim of reducing the costs associated with externally managed assets and gaining greater control over its investment operations.

The challenge was to create a fully functioning organisation within a short timeframe, whilst establishing the appropriate operating model, regulatory framework, technology infrastructure and external collaborators to support the new function.

THE APPROACH

Designing and implementing an end-to-end, in-house asset management capability

We designed the target operating model and supported the regulatory approval process required to establish the new function. This included defining the organisational structure, capabilities and governance needed to operate an effective in-house asset management business.

We supported the selection of key external vendors, including HSBC as the outsource provider, alongside Charles River and Markit EDM as the core technology and data platforms.

We then supported the organisation through implementation, including hiring the new team and migrating assets from external managers into the newly established in-house function.

THE OUTCOME

An established in-house asset management function managing £18bn within 12 months

Within 12 months of the initial design, the life company had established a new asset management function, managing £18bn of fixed-income assets.

The new capability gave the organisation greater control over the management of its assets whilst reducing ongoing management costs. It also established the operating model, technology infrastructure and organisational capabilities needed to support further transfers of assets in-house.