Investment Management and Responsibilities of the Postholder

Transcription

1 JOB DESCRIPTION Post title Employer Responsible To Portfolio Manager LPFE Limited Investment Manager Purpose of Job The postholder is responsible for: the management of internal investment portfolios of the Lothian Pension Fund and other Funds managed/held by the City of Edinburgh Council ( the Funds ) both as administering authority or as held directly by the authority; externally managed portfolios; recommending investment manager appointments and terminations, monitoring managers, analysing and reporting on investment outcomes against objectives; ensuring compliance with all relevant regulations and legislation, processes and procedure as agreed by the Council and/or relevant governance bodies; and other related investment management matters. Major Tasks Providing investment advice and support to the Investment Manager/Investment & Pensions Service Manager/Director of Corporate Governance, other senior officers, elected members and employer organisations participating in the Funds, and contributing to the Investment Strategy for the Funds (10%) Managing a portfolio of investments, undertaking due diligence on potential investments for the Funds and selecting appropriate investments. (60%) Analysing external investment managers of the Fund; undertaking meetings, qualitative and quantitative analysis of the portfolios; and recommending change where appropriate. (20%) Reporting on internal and external investments to elected Members and senior officers of the Council and other stakeholders. (10%) Job Activities Investment Strategy/Advisory Service Investigative analysis and monitoring of global investment markets, economies and other investment issues affecting the Funds; Identifying factors which have a significant impact on the Funds, both beneficial and detrimental and making recommendations to improve performance and/or reduce risk; Advising on the suitability of benchmarks and comparative fund structure; Contributing to the working of the investment strategy and investment advisory service for the Funds.

2 Internal Investment Management Appraising and undertaking due diligence on potential suitable investments for the Funds including writing reports and analysing the potential impact of such investments on the Funds; Ensuring that the Funds policies and procedures are followed in relation to responsible investing, including engagement with companies and voting. Discussing specific company issues with the Funds voting and engagement provider as required; Buying, monitoring and selling portfolio investments; Interpreting investment performance information; analysing performance measurement and risk reports on a regular basis; and liaising with the independent performance measurement service provider. External Investment Managers Developing and maintaining professional working relationships with external providers as the primary contact; Assisting in the selection process, including making investment manager and product recommendations and negotiating fees; Leading meetings with or about external investment managers; Analysing individual external investment managers investment decisions, style and performance; writing reports on and analyses of external investment managers; monitoring external investment managers adherence to Statutory and/or Local Authority Investment Regulations and local agreements. Divisional Role Contributing to the strategic direction and management of the Funds; Ensuring that the professional integrity of the service is maintained at all times; Preparing management information reports on a regular basis; Developing and maintaining good working arrangements with service managers, immediate colleagues, Elected Members, senior officers of other Council Departments and outside bodies, to ensure effective and efficient working; Leading meetings with senior external investment managers and advisors regarding future strategy and performance; Initiating system and process changes both internally and externally; responding positively to changes affecting the service, advocating new practices and procedures and driving forward change processes; Wherever possible, satisfying personal objectives agreed with the Investment Manager at Performance Review and Development (PRD) meetings, and other meetings (e.g. One-to-Ones); responding positively to feedback and accepting responsibility for own learning and development; Participating in staff selection, appraisal and development, as required; Deputising for the Investment Manager at Committee and Strategy meetings, as required; Carrying out other appropriate duties and responsibilities, as required.

3 Supervision and Management of People (Numbers and type of staff) No direct line management responsibility. Complexity Range of tasks Interpretation of complex investment and economic data; Interpretation of qualitative issues; Development and management of relationships on a professional basis; Written and verbal communication of technical issues to different audiences; Negotiations with external bodies regarding fees and other terms. Creativity and Innovation The postholder is expected to develop methods of investigative analysis appropriate to the issues faced. The postholder is expected to develop solutions to problems, some of which can be oneoff. The postholder is expected to use initiative at all times to find solutions and review options for the Funds. The postholder is expected to communicate complex investment issues, both reports and presentations, in a style suitable for the recipient. The postholder is expected to plan his/her own work in order to deliver objectives. Contacts and Relationships The postholder is the primary contact for communications with the companies and pooled vehicles in which the internal portfolios invest. These will be the most senior individuals, setting the strategy for the company/vehicle. Contact will be to assess quality and risk to establish whether investment is warranted. Executives and other senior representatives from external investment managers. Contact will be to assess quality and risks, to establish whether manager is suitable to appoint and to monitor once appointed. Council s Senior Officers, Elected Members, advisers and other external organisations. Contact will be to attend Committee meetings, to present reports and to provide training and other information. Provides advice and guidance to executives of employer organisations of the Funds on improving/maintaining investment strategy, performance and risk. Regular contact with senior officers and peers in equivalent councils or funds for networking and information sharing purposes.

4 Supervision Received Undertakes professional duties and responsibilities alone according to priorities, policies and objectives agreed with the Investment & Pensions Service Manager / Investment Manager. Has delegated authority for the management and performance of the relevant internally managed portfolios. Provides reports and other information for the attention of the Investment & Pensions Service Manager / Investment Manager and the Management Team. Discusses significant matters with the Investment Manager/Investment & Pensions Service Manager prior to taking action. Decisions (Discretion) Investment Strategy/Advisory Service involves deciding: The most appropriate methodology of analysis and monitoring of global investment markets, economies and other investment issues affecting the Funds (constantly); On which factors have a significant impact on the Funds, both beneficial and detrimental (constantly); Whether new concepts could/should be included in the Funds investment strategy to maximise performance and manage risk (periodically). Management of internal portfolios involves deciding: The investment opportunities/companies on which to undertake further due diligence (daily); Whether to purchase/sell investments, including judgements on the quality of the company, management, profitability and future share price movements (daily); On research quality and which research providers and brokers should be used by the Funds (typically annually); Which broker to use for specific deals (daily); The most appropriate analysis and approach for different opportunities (weekly); On the most appropriate level of risk for the overall portfolio and the importance of market conditions (constantly); On the most appropriate methodology to analyse and measure risk of the portfolio (periodically); On the appropriate use of voting rights to influence individual company's policies and objectives, in consultation with advisers; On the most appropriate style and investment approach for the portfolio to be recommended to the Investment Strategy Panel (periodically). Management of unlisted investments (such as private equity/debt) involves deciding: Whether to recommend an asset class to be included in the Funds strategy (periodically); Priorities for undertaking further due diligence on investment opportunities (weekly);

5 The most appropriate analysis and approach for different opportunities (weekly); Whether to recommend specific investments to the Investment Manager/Investment & Pensions Service Manager, including judgements on the investment approach and quality of the manager (monthly); Whether fees of specific investment opportunities are reasonable and the extent to which negotiations can be undertaken (periodically). Management of external investment managers involves deciding: Whether a manager is suitable for the Funds, including assessment of personnel, processes, philosophy and performance; On suitable risk controls for the mandate; Whether the manager is managing investments in-line with expectations; Which factors could impact on the managers ability to deliver its objectives; Whether to highlight new risks associated with a manager to senior colleagues and if/when to recommend change. Decisions (Consequences) Internal portfolios managed are several hundred millions of pounds in value. Each individual investment decision can involve sizable value (up to 30-50million). The performance of such investments has significant financial implications for the Funds. Advice on investment strategy can have financial consequences of equivalent impact. The decisions (and behaviour) of the postholder brings reputational consequences to the Council. These can impact on the Funds ability to access investment opportunities and hence impact on the Funds performance and finances. Resources Part responsible for the utilisation of staff within the investment management team (investment analysts, investment administrator and office administrators). Part responsible for the budget for external investment management. Postholder is responsible for negotiations with managers and monitoring fees. Specialised computer systems such as Bloomberg and Private i. External advisers (e.g. stock brokers, voting provider, performance measurer). Environment Work Demands The postholder will regularly be faced with conflicting demands and the need to respond to rapidly changing investment market conditions. The postholder will be required to prioritise effectively his/her own time and activities and the allocation of available resources. Deadlines for some investment opportunities are inflexible. Missing such deadlines will impact on the finances of the Funds. The demands will require the postholder to undertake duties outwith normal office hours periodically.

6 Environment Physical No special requirements. Environment Working conditions The job requires periodic travel to locations outwith Edinburgh (typically London and occasionally further afield) for meetings. Typically, this can occur up to twice per month and often involves travelling at times outwith the standard office working day at unsociable hours and can sometimes be arranged at short notice. Environment Work Context No special requirements. Knowledge and Skills Full postgraduate professional qualification (eg CFA or CCAB) is essential. Experience The postholder will be educated to degree level and have a full post graduate professional qualification in a relevant subject. Investment experience and demonstrated investment competence is essential. This will include experience in the use of mathematical and quantitative analysis techniques, economic and investment appraisal. Additionally, possession of professional skills commensurate with the responsibilities of the position is required. Organisation Structure Investment and Pensions Service Manager Legal and Risk Manager Investment Manager Pensions & Accounting Manager Portfolio Managers Investment Analysts Date Signed....(Job Analyst). (Manager)