General roles

In particular, Perennium acts alongside its clients to:


WHAT: Define or redefine the Investment Management framework and policy
WHY: Ensure a best practice approach, consistent with the purpose and ethics of the Foundation

  • Review of the overall investment strategy and investment philosophy (incl. Investment Policy Statement)
  • Assessment of the financial needs and return objectives, compatibility with the risk tolerance
  • Selection of the appropriate asset classes, and ensuing strategic asset allocation
  • If relevant: choice of the type of Responsible Investing approach (values alignment, risk reduction, social or environmental impact)
  • Definition of the asset management architecture (incl. portfolio management delegations), assistance for the selection of financial intermediaries (e.g., RfP) and elaboration of investment guidelines and constraints
The investment strategy is the most important element of the entire value chain. The state of the economy, and in particular the interest rate environment (unique in history), require for most Foundations a complete review of their strategy.

WHAT: Optimize the set-up and the management of the financial portfolio
WHY: Increase the net performance power

  • Review of the portfolio construction methodology (maximize performance per unit of risk)
  • Analysis of the asset management structure: full value chain, full cost chain, consistency and trade-off between the two
  • Benchmarking of the different steps
  • Identification of performance engines (enhance) and inefficiencies (suppress)
In such a high risk macro-economic environment, which also drastically limits income sources, making the most of one’s resources and securing one’s existing assets and wealth becomes a major necessity.

WHAT: Superintend the portfolio activity (daily basis)
WHY: Provide the transparency that allows the Foundation to better understand, control and anticipate

  • Oversight of the investment strategy implementation by the financial intermediaries
  • Tracking of each transaction (purchase/sale, debit/credit…)
  • Monitoring of risk factors (exposure), assessment of the portfolio vulnerability (sensitivities)
  • Rigorous and independent performance measurement, both absolute and risk-adjusted (e.g., Information Ratio)
  • Monthly Reporting and ad hoc presentations to the Foundation’s Investment Committee and/or Board of Directors
Having investment matters under tight control brings more serenity to the Board of Directors (it is particularly important when it comes to reputation risks), while enhancing the attractiveness of the Foundation for potential donors (the Foundations we work with have experienced it).