casestudies

Case Studies

Case study - Investment-Advisory

Client

A Leading Bank

Mandate

Investment Advisory

Frequency

On Availability of surplus Funds

Scope of work
  • One-time Corpus Fund review
  • Setup of investment policy guidlines
  • Investment strategy & execution
  • Investment back office
Challenges
  • Advisory linked to brokerage – conflict of interest
  • Limited number (4) of counterparties
  • No defined policy guidelines
  • Lack of proper plan and forecasting capabilities
  • Time lag in investments execution
  • Lack of band-width to address regulatory changes
  • No reports and unsatisfactory fund review
Achievements
Policy Set-up
  • Defined and refined investment objectives
  • Steered Funds away from credit risk
  • Institutionalized decision making
Investment Strategies
  • Yield enhancing measures
  • Planned investments with objective of investing in higher yields
Process Enhancements
  • Timely investments and utilization of Funds
  • Minimized idle cash
  • Enhanced interest accrual leading to improving returns
Fund Review
  • Superior controls and better monitoring

Case Study -Investment Consulting

Client

IT and IT services company

Mandate

Investment Consulting

Description
  • The company had gratuity and superannuation trusts that were internally managed. Trustees were making
  • investment decisions. This was against global pension guidelines of the client
Scope of work
  • Whitepaper on insurer managed gratuity and superannuation funds
  • Roll out of RFP to the insurers
  • Evaluation of products, funds, services of insurers and fit to client requirements
  • Recommendation to client on insurer
  • Asset allocation study for defined benefit plan
  • Design of asset allocation model for defined contribution plan
  • Migration support
  • Employee communication
  • On-going performance monitoring, rebalancing monitoring and transaction support
Challenges
  • Client had a large fund with complex reporting requirements
  • Evolving regulation among insurers made product design unstable
  • Divergent requirements from multiple stakeholders on the client side
  • Data insufficiencies
Value additions
  • India Life Capital was able to execute this project over a period of 12 months
  • The outcome of the assignment was the shift of the Trusts of the client from a self-managed model to an insurer managed one
  • A governance structure for investments was designed and implemented by us
  • Outcomes of a best of breed fund invested with the most competent fund managers
  • Enhanced governance and Trustee reporting
  • Greater controls
  • Redefined Trustee roles to one of oversight instead of execution
  • Increase in long term returns resulting in savings in funding

Case Study - consulting-services

Client

Energy company

Mandate
  • Consolidation of retirals and implementation of a governance program for retirals
Description
  • The company had multiple structures for retirals across the country. After merging various constituents, the need for a single structure was felt
  • The objective of the assignment was to effect this consolidation
Scope of work
  • Whitepaper on existing structures with options, roadmap and feasibility
  • Integration of multiple structures of retirals across six locations with nods from regulatory bodies
  • Implementation of the governance program
  • Appointment of a new administrator
  • Shift of the gratuity and superannuation plans to a managed fund model
  • Closure of all legacy trusts
Challenges
  • Significant differences in benefits design and funding resulting in differentiation in employee entitlement
  • Conflicting methods adopted by regulators across the country
  • Nature of the project and its duration meant that it would impact employee services
  • Absence of data for long periods of time in legacy trusts
Value additions
  • India Life Capital was able to execute this project over a period of 22 months
  • As an outcome, the client had a single structure in each benefit
  • Legacy trust funds were closed
  • Manuals covering various aspects of the functioning of the Trusts were set up and an audit process implemented
  • The functioning of the Trusts aligned to global pension standards as required by the client