Fiduciaria de Occidente is a financial services company specialising in collective investment funds and the provision of investment trust, management, guarantee and real estate services. With an impressive track record that reaches back to 1991, it is a subsidiary of Banco de Occidente and part of Grupo Aval, the biggest financial group in Colombia and also a leader in Latin America.
The company has received the highest grade granted by Fitch Ratings Colombia for its collective investment funds, as well as an M1 rating for its investment asset management services. Similarly, it has been certified on its Quality Management System ISO 9001:2008 for the trust service of common funds management, investment portfolios, management trust and guarantee trust.
Assets managed by Fiduoccidente amounted to $11.2bn as of August 2017, of which $1.1bn managed as collective investment funds and private capital funds, $5.4bn as pension liabilities trust, and $4.7bn as other trusts under management.
Fiduoccidente has a presence across 12 cities in Colombia, providing essential and timely services to over 12,000 clients. The company recognises that human capital is the most important asset to achieve its objectives and continually carries out training programmes on technical and management-related subjects.
Fiduciaria de Occidente focuses its strategy on four areas: institutional, governance, companies and individuals. This strategy generates a value proposition tailored to each client’s needs and focuses on the development of products and services according to various market trends.
The company offers to clients a diverse range of services on asset management through collective investment and trust funds. The various investment options the company offers include demand deposits, term deposits, investment in state-owned enterprises, investment of rights revenue with exposure to international markets, and private capital funds in various sectors, through strategic alliances with leading promoters.
In regard to trusts, the company offers services on trust management, infrastructure, guarantee, payment source, real estate, individual investment portfolio, advances, securitisation, bonds issuance and trust schemes tailored to each client’s needs.
An experienced team
Thanks to a prudent approach that focuses on generating returns without compromising capital preservation, Fiduciaria de Occidente Investment Management Area has become one of the main providers of financial services in the country, and thus, one of the most efficient and respected teams in asset management. Employing an expert team headed by Investment Manager, Jorge Enrique Cortes, who has more than 25 years of experience in the local capital market, Fiduoccidente has become one of the leading trust funds in terms of assets under management (AUM). The company is also becoming a leader in management of private capital funds, an increasingly appealing option for clients who are interested in a mix of portfolio diversification and profitability.
Fiduoccidente has been a pioneer in the adoption of best practices for financial services companies worldwide. The investment team is defined by three areas, each with a specialisation level geared towards achieving the best results:
- Strategy and Economic Investigation: leads research and proposal of main investment opportunities for different portfolios, using models that analyse various economic variables, estimating the scenarios that may affect various assets categories, and conducing analysis of the main return sources where it is possible to invest.
- The Portfolio Managers: responsible for portfolio management and also involved in the Investment Committee that designs strategy.
- The Money Desk: focuses on the optimal execution of investment orders in the electronic order book of Portfolio Managers looking for the best execution levels, as well as the best counterparties to manage each asset.
Thanks to the investment team’s excellent performance over the last few years, the company has received several awards, which reflect the company’s excellence across a range of disciplines. The team studies and applies various techniques to analyse and optimise decision-making in portfolio management. These include performance attribution techniques through which portfolio performance is assessed in comparison to established benchmarks, competition and the market. The investment team has been praised for the speed and efficiency of its decision-making processes, particularly when quick decisions are necessary.
Effective management of risk
Fiduciaria de Occidente has established robust procedures to deal with financial risks associated with investment portfolio management. For this purpose, an area has been established to determine parameters that help mitigate exposure to losses associated with variables affecting market, including local and international turning points, as well as disposal of net assets and issuer selection. The financial risk area has created tools – based on internal methodologies – that help identify exposure to risk by measuring circumstantial risk (stress testing), as well as backtesting processes that help validate the effectiveness of forecasting models. These procedures are complemented by meticulous scrutiny of the local regulator, creating a complete and integral system of financial risk management.