Fitch: Brazilian CIOs Drive the Investment Decisions in Survey

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings' recent survey on Brazilian front-office best practices for investment managers shows that CIOs usually participate directly in investment decisions.

Of those CIOs surveyed, at least half are directly or routinely involved in investment decisions, while 25% directly manage assets or portfolios as a portfolio manager (PM) or similar role. A smaller percentage (12%) of CIOs at surveyed firms focus exclusively on organizational and team management issues, while just 13% of asset managers surveyed have only a single CIO within their organization.

The Brazilian survey contrasts with a similar survey of European Asset Managers published in 2014, in which 53% of CIOs were focused on organization and team management. Similarly to the Brazilian survey, almost half of CIOs (47%) were directly or routinely involved in investment decisions, but only 11% were directly managing some assets or portfolios.

Consequently, at a majority of the surveyed European firms, the CIO's role is strategic, as opposed to being directly involved in investment decisions or portfolio management. Fitch sees the presence of a second layer of investment oversight, typically provided by a CIO, as a best practice. It supports a clear delineation of responsibilities and provides a counterweight to the PMs.

The special report, "Front-Office" Best Practices in Investment Management -- A Survey of Brazilian Asset Management Processes," was published on April 13, and "'Front-Office' Best Practices in Investment Management -- A Survey of European Asset Management Processes," was published on Sept. 18, 2014. Both are available at www.fitchratings.com.

The above article originally appeared as a post on the Fitch Wire credit market commentary page. The original article can be accessed at www.fitchratings.com. All opinions expressed are those of Fitch Ratings.

Applicable Criteria and Related Research:

'Front-Office' Best Practices in Investment Management (A Survey of Brazilian Asset Management Processes)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=864395

'Front Office' Best Practices in Investment Management

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=772248

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Fitch Ratings
Alexandre Yamashiro, CAIA
Director
+55-11-4504-2606
Fitch Ratings Brasil Ltda.
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Sao Paulo - SP - CEP: 01418-100
or
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Senior Director
+1 212 908-0386
or
Matthew J. Noll, CFA
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or
Media Relations
Alyssa Castelli, +1-212-908-0540
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Elizabeth Fogerty, +1-212-908-0526
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Source: Fitch Ratings

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