DEDICATED SOLUTIONS

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SEEYOND'S CUSTOMIZATION CAPABILITIES

Seeyond has developed strong customization capabilities to meet the investors’ specific needs and constraints. The company’s human scale facilitates close relationship with its clients. The multi asset class coverage and multi thematic engineering capabilities also provide the flexibility to easily adapt our investment processes to clients’ specific needs and to create unique dedicated strategies.

% DEDICATED SOLUTIONS

55% of total AuM

Source : Seeyond, as of 31/12/2019

AN OVERVIEW OF OUR TAILOR-MADE SOLUTIONS

  • CASE 1
    Adapt existing strategies to a specific geographical universe, return profile or risk level

    In short:

    manage of a range of three multi-asset funds for an Italian network.

    History:

    Based on the Seeyond Multi Asset Global Macro strategy and from an initiative of Natixis Investment Managers International, creation of a three multi-asset product range by integrating the geographical and risk profile constraints requested by the client.

    How did this project begin? Which type of client is it for?

    The project was born in 2012 following the search for a financial company specialized in non-benchmarked multi-asset class management by an Italian institutional client looking.

    What's the solution?

    To meet the client’s specific needs, we have built a range of three diversified funds targeting absolute performance and increasing risk profiles.

    The investment universe and investment leeway have been designed according to theses profiles, from a 100% Eurozone universe for the most Conservative profile to a more international universe in the case of the Balanced profile, and including exposure to emerging countries for the Dynamic profile.These three funds are directly distributed by the client the group's network through life insurance contracts.

    Why tailor-made?

    The client was interested by our unique "Quant Global Macro" approach and our "asymmetric" investment process based on flexibility, volatility control and focus on risk which they found well suited to the needs of their end clients. The client however had three specific requirements in terms of risk calibration, investment universe, and finally, implementation through the almost exclusive use of ETFs.

    We consequently adapted our Global Macro approach to the client's constraints. Only a model-based decision making process could meet the client’s requests while minimizing the risk of negative surprises compared to a pre-existing strategy.

    In addition, Seeyond has several Italian-speaking staff members, which allows us to produce quarterly management reports in Italian, including video reports. That way, the network’s advisors in charge of the funds’ distribution can easily communicate on investment decisions, understand the funds’ performance and explain them to their end clients. At Seeyond, we value this privileged relationship with our clients, and we continuously work to maintain it.  
     

  • CASE 2
    Integration of ESG criteria in an equity strategy

    In short:

    management of a Minimum Volatility fund adapted to ESG criteria for a French institutional investor.

    History:

    integration of ESG criteria to the stock selection in our Minimum Volatility strategy.

    How did this project begin? Which type of client is it for?

    The project was born in 2016 with a request for proposal by a French institutional investor.


    What's the solution?

    In our Minimum Volatility approach, we add single stock’s ESG ratings in addition to their risk profiles for the stock selection.


    Why tailor-made?

    One of the important aspects of our equity strategies is that they can be adapted to our clients’ various constraints while maintaining the strategies’ primary goal.

    In the case of our client, a French institutional, the project consisted in combining the performance and volatility profile proposed by the Minimum Volatility approach while integrating ESG criteria in stock selection.

    We proposed an exclusion policy and weighting constraints to be integrated in order to obtain a portfolio in line with the client’s expectation in terms of responsible investment.

    We maintain a close relationship with the client through regular report production on the dedicated management and in order to analyze any potential evolutions.

  • CASE 3
    Combine Seeyond's flagship strategies

    In short:

    Build a fund combining several Seeyond strategies for a French institutional client

    History:

    Creation of a multi strategy fund combining Seeyond's Minimum Volatility and Multi Asset strategies to meet a client's Sharpe ratio constraints.

    What is the origin of the project? For what type of client?

    When we proposed this solution to our client in 2016, they were already invested in our Multi-Asset expertise. However, they were looking to increase its exposure to equity markets, while maintaining a conservative approach and diversifying performance sources.

    What is the solution?

    The solution consists of combining our Multi-Asset and Minimum Volatility Equity expertise, managed at Seeyond according to totally independent investment processes.

    The Multi-Asset expertise allows a dynamic exposure to international equity, sovereign debt and currency markets’ directional and this, through an original and robust approach. The strategy aims to generate performance as consistent as possible over the long term by managing sources of risk and short term opportunities across a wider universe.

    The Minimum Volatility approach aims to capture the risk premium related to the Low Volatility anomaly: low-volatility and highly decorrelated equities tend to offer more robust risk/return profiles than the market over the long term.


    Why tailor-made?

    The client was looking to rationalize its investments within one unique dedicated vehicle for transparency reasons but also in order to apprehend each investment solution overall.

    We proposed a tailor-made solution, with a very precise and adapted calibration to make this solution consistent with the investment framework and the objectives set by the client. In addition, the very strong complementarity of the two proposed performance drivers was attractive to the client. Finally, a tailor-made solution made it possible to satisfy the client's need to outsource results on a recurring basis.

  • CASE 4
    Overlay solutions

    In short:

    Set up an equity fund based on a multi-factor strategy and a hedging strategy for a major French insurance client

    History:

    Creation of an equity fund with active hedging management.

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    How did this project begin? Which type of client is it for?

    The project was born in 2018 and is in line with the several overlay solutions that Seeyond has tailor-made for institutional clients since 2014.


    What's the solution?

    This is a portfolio with two distinct buckets: one invested in European equities and one for hedging purpose through the use of listed options on equity indices. The hedge management is done according to a systematic process that decides, depending on market trends, whether to increase or reduce hedging, with an overall contrarian approach. After a sharp rise in the market, the hedge is increased and after a sharp fall the hedge is reduced. The main idea is to partially cushion market falls suffered by the equity bucket and to obtain a more robust performance profile over time.


    Why tailor-made?

    All Seeyond's solutions since 2014 on the Overlay activity, are tailor-made solutions to meet each institutional client’s specific constraints.
    In this activity, the main issues we are exploring are the following:


    • Is there a regulatory constraint?
    • What type of market risk does the client want to cover (speed and amplitude)?
    • What type of equity exposure does the client want?

    In the particular case of the project implemented in 2018, our client, a French insurer, was subject to Solvency 2 and wanted an investment solution consistent with their long term objectives. Finally, the client wanted a line-by-line equity investment solution that was managed in a quantitative style by Seeyond's equity investment team with a factor bias.

    After a few discussions with the client, the global strategy of the fund was finalized, and—a few months later—the fund was launched. Since then, we have been communicating regularly with the client through dedicated reports and stay in touch regarding any questions theirteams may have. It is a long-term relationship that is in our mutual interest.