Record’s Board of Directors have delegated the responsibility for approving all new products and investment strategies and for authorizing any changes to existing investment processes to the Investment Committee (IC). As such, the IC has final sign-off on any new investment products and strategies and approves any changes to currency universes or investment guidelines.
The IC delegates the day-to-day managing and monitoring of the investment portfolios to the Investment Management Group (IMG) – i.e. a subset of the IC members who oversee specific investment and portfolio management functions at Record. The IMG have ultimate decision-making authority and accountability within the scope of the product parameters, as set by the Investment Committee. Various aspects of market risk, including for example global macroeconomic developments, as well as other risk factors, which may affect the performance of our products, are reviewed by the IMG on an ongoing basis.
Decisions made by the IMG are communicated to the Portfolio Management Group (PMG) for implementation. The PMG is made up of the heads of the operational teams and ensures that all aspects of portfolio management are considered ahead of any changes to mandate parameters. The PMG also regularly discusses potential improvements to our systems and processes to ensure that we continue to deliver the highest level of service to our clients.
Since 2017, the IMG have been aided by a group of Portfolio Specialists in tactical decision-making and risk management in various investment areas including our Currency Multi-Strategy ESG-tilt - maintaining and updating our ESG database and currency selection models.
The Portfolio Specialists act in an advisory capacity to the IMG, providing additional insight into prevailing market conditions and positioning of our client’s currency portfolios. All Portfolio Specialists are members of Record’s Economic Research or Investment Strategy teams. Their output may range from research pieces focusing on particular risks or market themes, to specific trade recommendations. These are subject to deliberation between the IMG and Portfolio Specialists, and may subsequently be reflected within the scope of the IMG’s discretionary decisions relating to each of these product categories. All recommendations made by the Specialists (whether approved or rejected by the IMG) are tracked and evaluated with a formal review conducted by the IMG once a year.