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The Regulatory Fundamentals Group (RFG), a New York-based firm that provides business and regulatory insights for alternative funds, institutional investors and their advisers, has released FATCA Watch, a customised "issue spotting" tool to help advisers and fund managers quickly determine their exposure to the Foreign Account Tax Compliance Act.
Implemented as a way to reduce tax evasion that may occur when income generated in the US is transferred outside the country, FATCA imposes new due diligence, reporting and withholding requirements that will ultimately impact a broad range of companies and individuals both in the US and abroad.
FATCA,
UCITS hedge funds are typically more volatile and underperform their non-UCITS hedge fund rivals, according to a comparative study by the Edhec-Risk Institute.
The findings also show that the domicile of a fund is an important indicator of a fund’s likely performance with European domiciled funds delivering lower risk-adjusted returns compared to funds domiciled in other regions.
Noël Amenc (pictured), director of Edhec-Risk Institute, says: “Investors are increasingly considering hedge funds as part of their investment universe, but are also searching for access to sophisticated risk management techniques within the regulated and transparent world of mutual fund products.
Five out of six of Market Vectors investable hedge fund beta indices recorded positive returns in March, according to figures released by Market Vectors Index Solutions (MVIS).
The MV Emerging Markets L/S Equity Hedge Fund Beta Index (0.07 per cent) was the only index to finish the month in negative territory.
MV North America L/S Equity Hedge Fund Beta Index (2.08 per cent) was the best performer, while MV Asia (Developed) L/S Equity Hedge Fund Beta Index (1.48 per cent), MV Global L/S Equity Hedge Fund Beta Index (1.32 per cent), MV Global Event L/S Equity Hedge Fund
The Securities and Exchange Commission has adopted a final rule that streamlines the process for rulemaking by clearing agencies that are registered with both the SEC and the Commodity Futures Trading Commission (CFTC).
The final rule amends an interim rule adopted in 2011 that allowed rule changes filed with the SEC by clearing agencies to become effective as soon as they were filed when they were not related primarily to securities futures and did not significantly affect the clearing agencies’ securities clearing operations.
The final rule expands upon the interim rule to permit effectiveness upon filing for rule
By James Williams – Solvency II is an EU-wide piece of regulation which aims to introduce stronger rules on capital adequacy and risk management for insurance companies, and ultimately increase the protection of the final beneficiary. The Directive represents a major change in the way that insurance companies will operate because at its heart lies a requirement to focus far more exclusively on the assets being held on the balance sheet, and the inherent risks they represent.
Previously, insurance companies used to focus on liability risk assessment but the ’08 financial crisis has prompted regulators to ensure that greater risk
By James Williams – “Now is a good time to be a direct lending manager. We view what’s happening in Europe as a secular shift in the structure of its market. Whereas it was once 90 per cent dominated by banks, increasing institutional capital is beginning to balance things up,” comments Mike Dennis (pictured), managing director and co-head of Ares Capital Europe LP (ACE).
ACE is the European private debt lending arm of US firm Ares Management, a USD56billion alternative asset manager specialising in credit.
Quite how far European institutions will penetrate the capital markets remains to be seen.
By James Williams – Alcentra is one of the world’s leading asset managers. With a focus on sub investment-grade corporate credit it has built a strong 11-year track record in secured loan investing. It has USD16billion in assets under management, including some USD9billion in European assets.
Whereas historically European asset managers would gain access to loans by raising capital and creating a CLO, in recent times the use of fund structures has become more common. Certainly, CLOs are still used – last November saw Alcentra close its USD406.5million Shackleton II CLO, bringing the total number of CLOs on its US
Some 64 per cent of new hedge fund funds covered by a recent study carried out by Seward & Kissel had equity or equity-related strategies, up 14 per cent from the 2011 study.
Driven by the firm’s commitment to understanding the dynamics of the hedge fund marketplace, Seward & Kissel conducts an annual hedge fund study of newly formed hedge funds sponsored by new US-based managers entering the market each year.
Of the 64 per cent of new funds involved in equity or equity-related strategies, Seward & Kissel found that about 55 per cent were focused on US
By James Williams – The CLO market enjoyed a resurgence of sorts in 2012 with approximately USD50billion in new issuance, overshadowing the paltry figure of around USD13billion in 2011. Much of this CLO activity remains in the US, where major players such as Dallas-based Highland Capital Management LP – the largest US CLO manager by AUM (approximately USD14billion) – and New York-based BlueMountain Capital Management continue to originate deals.
Currently, Highland manages 21 CLOs. Over the course of 2012, BlueMountain successfully issued two CLOs representing USD1billion of issuance according to Bryce Markus (pictured), Managing Partner and Portfolio Manager: “Both of
By James Williams – Prior to the global financial crisis the ability for European corporates to finance themselves via leveraged loans was dominated by a prevalence of collateralised loan obligations (CLOs): in 2007, at its peak, the CLO market bought up two thirds of the USD166billion of leveraged loans issued that year, according to ratings agency Standard & Poor’s.
Banks would originate leveraged loans through a syndication process, whereby they and a number of other investors – including other banks and CLO managers – would each commit capital, and thereby diversify the risk. The CLO manager would repeat this process,
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