SD-03.7 — Manager Mandate Administration

Business Domain: BD-03 Manager & Fund Investment (Front office) · Applies: PUB

Purpose

Appoints and administers segregated / separately-managed-account mandates given to external managers. Manager Mandate Administration is the second of BD-03’s two execution paths — the public-markets path. Where SD-03.5 commits the institution as a limited partner in a closed-end fund, this Service Domain appoints a manager to run a segregated portfolio: assets held in the institution’s own name, governed by an investment-management agreement and a set of guidelines, funded immediately, and terminable at will. It both sets the mandate up and oversees the manager’s adherence to it.

Service Operations

• Define the mandate parameters and guidelines — the benchmark, the sector, geography and concentration limits, the derivatives and leverage permissions, and the ESG screens the manager must run within.
• Negotiate and execute the investment-management agreement — the IMA and the fee schedule, with the investment policy statement attached.
• Open and fund the account — appoint the custodian, open the segregated account, and fund it with cash or an in-specie transfer of existing holdings.
• Run transition management — for an in-specie funding or a manager change, plan and execute the transition to minimise implementation shortfall.
• Monitor mandate-guideline adherence — check the appointed manager’s portfolio against the mandate guidelines, pre- and post-trade, as the manager’s oversight.
• Manage breaches and mandate review — classify and escalate guideline breaches, and run the periodic mandate review through to renewal or termination.

Inputs and outputs

• Inputs: the selection recommendation (SD-03.2) and the operational due-diligence opinion (SD-03.3); the mandate need and constraints from BD-01.
• Outputs: an executed and funded segregated mandate, and the guideline-adherence record — consumed by SD-03.6 (manager monitoring), SD-03.8 (the retention decision), and BD-12 (which keeps the books for the segregated account).

Entities

• Consumes: Legal Entity (E-01, the manager), Portfolio / Mandate (E-03) — the segregated mandate is a Portfolio / Mandate the external manager runs; the SD-03.2 selection recommendation; the SD-03.3 operational due-diligence opinion.
• Owns: the mandate-appointment facet of Portfolio / Mandate (E-03) for an externally-managed segregated account — distinct from SD-01.2, which owns the institution’s own investment mandate.

Standards

• The Investment Association Model IMA and equivalent standard investment-management-agreement forms. Mandate-guideline monitoring follows the same pre- and post-trade rule-checking discipline as SD-10.1, applied here as oversight of an external manager.

Open extensions

• The boundary with SD-10.1 Investment Guideline Monitoring — SD-03.7 oversees an external manager’s adherence to a mandate the institution set it; SD-10.1 is the institution’s own compliance engine for the portfolios it directly runs.
• The boundary with SD-05.8 Portfolio Transition Management on transition execution.