QIC Ltd. wants eight new risk management customers on top of the seven funds it currently helps, says Troy Rieck, a managing director at the Brisbane-based firm.
“We manage risk to increase returns,” says Rieck, visiting potential clients in Sydney.
Rieck’s team has 14 people and was formed in 2007 after prodding by QIC’s University of Chicago educated chief executive Doug McTaggart. QIC helps risk manage about $70 billion in assets under management including the $30 billion defined benefits scheme of the Queensland government.
QIC helps design currency overlays, asset overlays, manages liquidity and downside risk.
“We make your assets sweat,” says Rieck.
QIC competes with State Street Corp. and Russell Investments among others who offer similar services.
Over 18 months QIC’s risk management advice helped save a client $1.5 million, says Rieck.
Cross currency swaps can pay an investor as much as 100 basis points a year over and above their existing currency hedges, he says.
“Large institutional investors are our natural client base,” says Rieck.