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Hedge fund and investment management companies may not be properly protected against the potentially disastrous effects of a Financial Conduct Authority investigation, a leading insurance broker has warned.
The costs incurred with an FCA ‘Section 166’ enforcement notice range from hundreds of thousands of pounds to several millions pounds, but many FCA regulated companies will not be adequately insured.
Charles Wintour, managing director of Allegiance Insure, discovered the problem when a hedge fund client asked about the precise areas covered by their policy.
‘The hedge fund manager asked me specifically about a section 166 investigation,’ he says. ‘The
Neuberger Berman, an investment manager specialising in equities, fixed income, private equity and hedge fund portfolios for institutions and advisors worldwide, has implemented Hazeltree’s, treasury product suite.
Hazeltree’s suite provides Neuberger Berman with automated workflows in reconciliation, securities financing, margin management as well as cash and collateral management.
“At Neuberger Berman, we continually work to enhance our infrastructure to best serve clients and the increasingly complex solutions they demand,” says Pat Lomelo, Neuberger Berman’s Global Head of Operations. “Hazeltree has helped to streamline our treasury management function and has delivered leading-edge risk-reduction capabilities.”
“We are pleased to work
Alternative investment company Steben & Co has published a white paper on timing an allocation to managed futures.
The firm asks if the asset class has reached a cyclical low. The results of their research show that recent managed futures risk-adjusted performance (with a -1.99 rolling 12-month Sharpe ratio for the Barclay CTA Index as of June 30, 2017) is at its lowest point ever.
The study also finds evidence of historical mean reversion in 12-month Sharpe ratios. The study found a persistent pattern of mean reversion in 12-month Sharpe ratios in all the managed futures benchmarks Steben looked at
There is no doubt that outsourcing, as a concept, has become accepted practice within the hedge fund industry. Not only does it help start-up and emerging managers drive efficiency gains, more importantly it is not viewed negatively by institutional investors. They appreciate that cost controls are crucial to managers in the early years of building their business. But too much outsourcing can be a bad thing, as Devet Capital’s Irene Perdomo (pictured) tells Hedgeweek.
Evidence that outsourcing is being embraced was quite clear in a recent emerging manager survey produced by AIMA, in conjunction with GPP, a London-based boutique prime broker.
AcadiaSoft, a provider of margin automation solutions for counterparties engaged in collateral management worldwide, has integrated six additional in-scope firms into the AcadiaSoft Hub under Phase 2 of the new IM rules for non-cleared derivative.
The additional firms chose to use the Hub for IM in order to comply with the new rules, which became effective on 1 September, 2017 under the new regulatory framework established by the Basel Committee on Banking Supervision (BCBS) and the International Organisation of Securities Commissions (IOSCO).
Now, all counterparty groups that are in-scope for the new rules are using the Hub for IM
A survey of professionals working in Malta’s financial services industry carried out by Managing Partners Group (MPG), reveals that the clear majority expect the sector to enjoy strong growth over the next five years.
The sector currently contributes just over 12 per cent of Malta’s GDP, but 87 per cent believe this will be higher by 2022, with 70 per cent anticipating it will account for 15 per cent or more.
One of the key reasons behind this growth will be an increased focus on innovation. Some 16 per cent of those interviewed expect product innovation in the Maltese financial
Hedge fund liquidations declined in Q2 2017 as new investor inflows increased total hedge fund industry capital to a record USD3.1 trillion through mid-year, according to the latest HFR Market Microstructure Report.
The number of liquidations fell to 222 in Q2 2017, representing a decline from the prior quarter total of 259, as well as a narrow year-over-year decline from the 239 liquidations in Q2 2016.
Meanwhile, hedge fund launches were steady in Q2 2017, with 180 new funds opening as inflows resumed and total industry capital reached a record. The number of Q2 2017 launches was slightly below
Hedge fund incubator and accelerator Emergence, and NewAlpha Asset Management, the SICAV’s delegated manager, have selected VIA AM as the first investment for Emergence’s new European equities fund.
Launched in June 2017 with a target of EUR300 million, the fund is now closed to subscriptions.
Emergence will put EUR50 million into the fund VIA Smart Equity Europe, the biggest investment made by Emergence since its inception in 2012. The VIA Smart Equity fund was launched in March 2016 and targets long-term outperformance of the MSCI Europe, net dividends reinvested, with a similar risk profile. This injection will take the
DTCC-Euroclear Global Collateral Ltd (GlobalCollateral), a joint venture of Euroclear and The Depository Trust & Clearing Corporation (DTCC), and Lombard Risk, have formed a strategic alliance to drive further improvements in collateral management operations.
Lombard Risk has also joined the GlobalCollateral Partner Program. The first initiative under this alliance will link GlobalCollateral’s Margin Transit Utility (MTU) with Lombard Risk’s COLLINE solution, providing a streamlined and centralised collateral management process across all asset classes.
Under the alliance’s first initiative, Lombard Risk COLLINE users will be able to access MTU message statuses directly from their user interface, enabling a straight-through collateral management process across all asset classes – from entering trades and positions, to managing
Street Diligence, a provider of fixed income analytics software, has launched a new corporate structure offering which is designed to complement the company’s existing buy- and sell-side data and analytics.
The new offering enables credit analysts’ access to the most complex corporate structures, their debt guarantees and a view on subordination risk, augmenting Street Diligence’s existing coverage of specific deal terms and covenant analysis on fixed income securities.
“This is a significant addition for our rapidly growing client base,” says Stephen Hazelton (pictured), Founder and CEO of Street Diligence. In an increasingly competitive investment environment, our clients must seek
