Success Story

IDS Customized Services for Swisscanto – Proven Partnership for the betaFIPA Model

The Client

Swisscanto - a joint venture and asset manager of the Swiss Cantonal Banks - is a proven specialist providing high quality investment and pension solutions to suit the requirements of private investors, companies and institutions. In Switzerland, Swisscanto is a leading private investment fund provider, asset manager and provider of occupational and private pensions solutions. For its performance as a fund provider, Swisscanto is regularly recognized for excellence by leading national and international rating agencies. 

The Project

Since 2011, Swisscanto has been working with the experts at IDS GmbH – Analysis and Reporting Services (IDS) to prepare Fixed Income Performance Attribution ( FIPA ). Thanks to the success from improved data management and more tailored calculations, the natural next step is cooperating in the development of a performance attribution model specifically tailored to the needs of Swisscanto’s clients, one that could bolster the investment process at Swisscanto. Since no standard models for fixed income portfolios are available and therefore no satisfactory means for presenting attribution results, Swisscanto and IDS put together their own betaFIPA model.

The Success

The model which uses the “beta FIPA” method, developed in partnership with IDS, allows Swisscanto to obtain more informative results for mapping out bond portfolio investment procedures. This allows Swisscanto to demonstrate to their customers that outperformance is actually being achieved through the investment policy communicated to the client.

 

Swisscanto benefits from:

  • attribution taking into account each respective investment, the specific performance as well as markets and market trends
  • a tailored means of measuring the individual risk of fixed income with respect to the overall volatility of the bond market
  • a better modeling of the active bond portfolio investment process
  • producing more informative reports to the benefits of their clients
  • greater opportunities with respect to RfPs
  • a better explanation of the outperformance in bond portfolios using a more aggressive, Anglo-Saxon approach to assessing credit risk
  • supporting internal skills development in asset management