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Rethinking the cloud, a heightened call for operational freedom and an arms race to scale will be industry-defining issues for the alternative asset management industry in 2013, according to Gravitas, a co-sourcing platform providing cloud technology, co-sourcing and risk support to the alternative investment industry.
"With the lessons learned from a string of major frauds, the ripple effects of an epic financial crisis and regulatory upheaval, the alternative investment industry finds itself on the threshold of a new era marked by the emergence of exciting new business models," says Gravitas chief executive Jayesh Punater.
"More than ever, the hedge fund
A careful assessment of a hedge fund board’s role can help ensure alternative fund investors receive governance benefits that justify board expenses, according to a white paper by The Regulatory Fundamentals Group (RFG).
The paper, "The Unasked Question: Fund Directors – Worth It or Not? Why Alternative Funds Are Not Receiving the Value They Should from Their Directors," highlights key questions not being asked about the fund governance process.
A chief conclusion is that investors and managers who fail to address these issues may not derive sufficient value from their boards.
RFG’s paper comes at a time when institutional investors,
BNY Mellon has been appointed to provide tri-party collateral management services for CME Clearing Europe, the European multi asset class clearing house.
Services will be provided through MarginEdge, BNY Mellon’s derivatives margin management service for listed, OTC and bi-lateral OTC derivatives.
MarginEdge provides clients, clearing members and central counterparties (CCPs) with real-time views on location and positions in respect of margins and collateral.
Following CME Clearing Europe receiving regulatory approval of the new tri-party agreement for clearing members’ business, those members will be able to manage collateral through BNY Mellon.
James Malgieri (pictured), executive vice-president, global collateral services at BNY
Wells Fargo Global Fund Services has opened an office in Hong Kong, located in Wells Fargo’s existing local office in Central.
The Global Fund Services’ platform uses a platform and technology that provides traditional fund administration services, operational support, derivatives processing, bank debt processing, and cash/collateral management to alternative investment and private equity firms.
“We are committed to supporting our suite of industry offerings throughout the Asian region,” says Celia Choh, head of fund services Asia. “This expanded local presence is carefully integrated into our global platform, which leverages Wells Fargo’s market experience and expertise.”
Johnson Har will lead the
Legg Mason and affiliate Permal are to acquire Fauchier Partners, a European-based manager of funds of hedge funds, from BNP Paribas Investment Partners. The deal, which will see Fauchier Partners combine with Permal, will create an institutionally focused platform with approximately USD24 billion in assets under management, offices in nine locations around the world, and a global investment team based in New York, London, Paris and Singapore.
The transaction is expected to close in the first quarter of 2013 and be accretive to Legg Mason’s earnings in the first year, reflecting Legg Mason’s ongoing commitment to create shareholder value. The
The Depository Trust & Clearing Corporation (DTCC) is proposing changes to its settlement processing for money market instruments (MMIs) to boost efficiencies, improve intraday settlement finality and further reduce credit and liquidity risk in the MMI market.
In a white paper to the industry – “Reducing Risk and Enhancing Intraday Finality in the Settlement of Money Market Instruments” – DTCC, through its depository, The Depository Trust Company (DTC), plans to enhance the settlement model to eliminate the risks that come with intraday reversals of transactions in DTC’s MMI system.
These enhancements are subject to regulatory approval.
“The MMI process at
Advise Technologies, a software solutions provider for global regulatory compliance, has released a list of top tips for private funds preparing for their first SEC examination.
Advise Technologies, a software solutions provider for global regulatory compliance, has released a list of top tips for private funds preparing for their first SEC examination.
As part of the Dodd-Frank Act, private fund advisers have to register with the SEC for the first time and are now subject to examinations under the National Exam Program (NEP).
Administered by the Office of Compliance Inspections and Examinations (OCIE), NEP is beginning examinations for certain newly
It takes at least USD250m in assets for a hedge fund to be self-sustaining on its management fees alone, while the largest hedge fund firms incur significant additional costs due to complexity and size, according to the first global survey of the costs of establishing and managing a hedge fund business.
The report, 2012 Hedge Fund Business Expense Survey, was conducted by Citi Prime Finance to shed light on business expenses involved in running a hedge fund, and to provide benchmarks for hedge fund executives as well as for investors conducting due diligence into how managers run their organisations.
The
Linedata has released a new version of Icon, its fund accounting and administration platform.
This latest version delivers more efficient business processing and workflows, including pro-active exception handling and extended instrument coverage.
Linedata Icon manages, either on a hosted or deployed basis, all the processes that need to take place to produce a true net asset value and accurate unit prices.
This release of Linedata Icon includes enhanced facilities for handling money market funds. In response to market shifts towards more complex and diverse fund structures, it also includes greater, readily configurable, collective pricing functionality.
Paul Westgate,
LCH.Clearnet Group will extend its clearing business for OTC interest rate instruments to Australian banks.
LCH.Clearnet will apply for an Australian clearing and settlement facility licence that would enable it to offer its SwapClear OTC interest rate swap clearing to Australian banks, allowing them to join the existing services used by 70 international bank members.
Four of Australia’s five domestic banks have submitted letters of intent to use LCH.Clearnet’s SwapClear to clear interest rate swaps.
LCH.Clearnet’s SwapClear service currently clears AUD3.9trn in Australian dollar denominated swaps, and the international members of the service have expressed strong support for SwapClear’s expansion
