Most investment activity and decision-making is driven by a desire to optimise investment outcomes, however behavioural biases means that there is often limited interrogation as to whether this activity ultimately adds value to investment objectives. CLERUS offers access to an independent and objective activity-based performance review and improvement process. This tried and tested approach has been successfully developed at leading investment firms, reducing cost and improving performance. It is our experience that small improvements can make a big difference!

CLERUS’ activity based performance improvement process provides three simple steps for pension funds to use that lead to improved effectiveness for decision-makers:
1. Identify investment activities required to deliver on long-term objectives in partnership with trustees and plan sponsors (often very different from the recurring fee-based activities proposed by investment advisors)
2. Determine/quantify whether activities are value-added or non-value-added
3. Continuously improve the value-added activities and minimize or eliminate non-value added activities

CLERUS Professional CIO Service is suitable for small to medium sized pension funds that do not have the capacity to hire full-time investment experts, or build an internal investment capability. By paying only for the time needed, plan sponsors and trustees can significantly improve their investment governance and investment decision-making for a fraction of the cost they would pay for outsourcing solutions such as fiduciary management.

At the outset, professional investment teams and processes are set-up to optimise performance. However over time, investment activities can become increasingly ‘habitual’ and no longer add value. Typical reporting will not reveal investment activities that are detracting value. This makes it difficult for CEO’s/CIO’s to establish if performance is being optimised across the organisation. An Independent perspective can unlock performance improvements and identify cost savings in the investment process.

It is our experience that a large number of loss-making investments can be avoided if investment propositions are independently evaluated by someone who is not benefitting financially from their implementation. It is also a basic investment governance requirement to properly analyse and challenge all investment propositions prior to committing time and money to their implementation. Our applied experience as investment managers puts us in a unique position to provide an informed and unbiased evaluation of the various investment propositions put forward to pension fund decision-makers.