A Tricky Client

Background:SG city

The client had a portfolio of hedge funds managed on a discretionary basis by a large bank.

Situation:

The portfolio had lost money and the bank was being accused of investing in assets that were substandard.

Action:

A detailed report was written analysing in some depth the portfolio performance, construction, holdings and risk budget.   It was concluded that while the bank could have communicated in a simpler manner, the portfolio characteristics were well within industry standards and the bank had the best aims of the Client in managing the portfolio.

The Client requested the portfolio be reassessed in more depth which was done but the conclusion remained that the bank had acted in the best interests of their customer

Result:

The Client did not pursue the case.