Features of BIAS’ institutional asset management services:
- Custody is at Comerica Inc, one of the USA’s 25 largest bank holding companies.
- Monthly statements.
- Detailed quarterly reporting with portfolio analytics.
- In person quarterly meetings
BIAS offers a comprehensive asset management service to the Captive Insurance industry whereby BIAS seeks to maximize income for the captive while at the same time meeting expected payout requirements. Through its partnership with Comerica, captives may also obtain Letters of Credit or establish 114(b) Trust structures for their continuing needs (at market rates).
The dilemma facing captives is the need to match finite risk from a variety of insurance structures against financial instruments whose values fluctuate in response to indeterminable (non-finite) market events. Some captive managers attempt to avoid market risk by placing captive assets in highly liquid investments such as money market funds (often collateralized against Letters of Credit) not realizing that in a very low interest rate environment they are in fact decreasing the likelihood that future claims may be satisfied as portfolio income decreases potentially along with asset values.
BIAS has many years of experience structuring portfolios for captives so as to maximize income while at the same time meeting payout requirements gleaned from extensive meetings with the captive manager as well as the plan sponsor. Specifically, our portfolio managers will:
- Minimise interest rate risk by matching duration of individual assets against the timing of expected claims
- Control credit risk by selecting only single-A rated or better bonds
- Eliminate currency risk by maintaining assets in the currency of expected claims
- Ladder portfolios to minimize impact of changing interest rate levels
BIAS has the greatest respect for the objectives of Trust Administrators to efficiently pass client assets from one generation to the next.
BIAS prides itself on delivering clear and concise information to trust intermediaries inclusive of comprehensive portfolio analytics to demonstrate professional prudence in the management of client assets. Download a sample of the reporting package.
The portfolio analytics includes:
- Time weighted performance data over various time periods against appropriate market indices.
- Analyses of major geographic and sector allocations of equities holdings.
- Fixed income analysis including credit quality, duration and income generation.
- Basis in all major currencies.
In addition to administering registered pension plans in Bermuda, BIAS provides discretionary investment management to both Defined Benefit and Defined Contribution pension plan sponsors through its Managed Portfolio Service structure. The plan sponsor provides a mandate within which to operate with 24/7 internet based reporting access.
We provide custody through our agents for institution assets at Comerica.
Comerica is one of USA’s 25 largest bank holding companies. They provide monthly reporting which BIAS will then overlay its own portfolio analytics so as to assist corporate officers in their own portfolio analytics.