The past few years have demonstrated the importance of performing a detailed review of the operations of a given fund. Arowana Asset Management Ltd offers a unique combination of operational and market experience that gives us the tools and knowledge to analyze the operational risk of a given fund and flag any inconsistencies or weaknesses of a particular structure to our clients. Our Head of Operational Due Diligence, Russell Davidson, a Fellow of the Institute of Chartered Accountants in England and Wales, has over 24 years of experience in Asia as a senior finance and operations professional.

Since we are based in Asia we meet regularly with local funds and have developed first-hand knowledge of their operational infrastructure and portfolio management systems and controls.

We define operational risk as the risk of loss resulting from: inadequate or failed internal processes; corporate governance; compliance procedures; prime brokerage; counterparty risk; people; systems; and other external events. It is the risk of losses due to factors other than market risk or credit risk.

We spend a substantial amount of time reviewing the parameters related to operational risk. Our unique process reviews more than 60 key factors that we believe are paramount in understanding operational risk. Our report focuses on those areas where issues have been identified and we make sure our clients have a clear understanding of the risk they are taking when deciding to invest in a particular fund.

Services offered include but are not limited to:

      Single Fund Operational Due Diligence review

      Entire Portfolio Operational Due Diligence review

      Customized topic specific reviews

      Consulting services for operational due diligence

As we aim at providing bespoke services to our clients, we have the ability to provide a due diligence process that will suit a given client’s specific requirements with emphasis on their selected risk factors.