Asset management has always been an information-based business and as such, managers are not immune to facing innovative and disruptive forces making inroads in other industries.
In the first of a five-part series, SEI discusses the impact of five disruptive technologies and how they can be applied to the financial industry. The first of these five trends relates to IBM Watson, and the power of cognitive computing.
One of the biggest issues with risk when it comes to investing is that investors will invariably think about it in binary terms; what is the level of risk? Is it too high or too low? Of greater import, however, is understanding the composition of risk.
Navigating the increased regulatory requirements of AIFMD has been a costly and resource-intensive exercise for many investment managers over the past few years. Now that the dust has settled on AIFMD, fund managers need to decide on, and implement, the most efficient operating models that allow them to manage assets and raise new capital.
Private equity managers are finding that increased demands for transparency from their LPs are requiring them to change their mindset, especially when it comes to sharing information on how assets are valued.
The business of asset management has grown exponentially more complex over the last decade. As system technology and data management improves, managers are devising ever-new investment strategies to find that elusive source of alpha.
To help overcome the increased reporting burden faced by private equity managers, SEI has developed an automated end-client reporting capability. It comes at a time when global PE firms are having to adapt to regulation in the form of AIFMD and Annex IV reporting, not to mention a desire by LPs to derive greater transparency from their PE allocations.
According to a survey released by Deutsche Bank in September 2014, ‘From Alternatives to Mainstream Part Two’, total assets managed by ’40 Act mutual funds reached a record high of USD257 billion by end-2013, representing over 60 per cent growth for the year. Through May 2014, that figure had grown a further 18 per cent to over USD300 billion.
Limited partners are asking for more frequent, transparent reporting from private equity managers and are increasingly assessing a GP’s operations as part of their investment criteria.
By James Williams – Private equity has never been synonymous with the word liquidity when it comes to investing in alternative assets, but a new report by SEI’s Investment Manager Services division suggests that this may be changing.