The hedge fund industry is facing a
transformational crisis. For firms to survive, they have to address key
shortcomings. If they do, they represent the future of active asset management.
This is a key theme in a new report from the US consulting firm Casey- Quirk,
which provides research and advice on the funds management industry. Ben
Phillips, a partner in the Bostonbased firm who was a former research head at
Cerulli Associates, oversaw the report and is scheduled to talk about it and
other trends on a visit to Australia
early this month.
Hedge fund industry will make a comeback – CaseyQuirk
The hedge fund industry is facing a transformational crisis. For firms to survive, they have to address key shortcomings. If they do, they represent the future of active asset management. This is a key theme in a new report from the US consulting firm Casey- Quirk, which provides research and advice on the funds management industry. Ben Phillips, a partner in the Bostonbased firm who was a former research head at Cerulli Associates, oversaw the report and is scheduled to talk about it and other trends on a visit to Australia early this month.
The changing world of risk: lessons from the crisis
The GFC has caused a rethink in so many
fundamental aspects of institutional investing, but none more so than in the
overlay of risk management principles and their implementation. A simple
assumption, for instance, that was implicit in the way some institutional investors,
in particular the big endowments, viewed liquidity was that you could always
turn wealth into cash. We have learnt that this is not always the case.
The changing world of risk: lessons from the crisis
The GFC has caused a rethink in so many fundamental aspects of institutional investing, but none more so than in the overlay of risk management principles and their implementation. A simple assumption, for instance, that was implicit in the way some institutional investors, in particular the big endowments, viewed liquidity was that you could always turn wealth into cash. We have learnt that this is not always the case. Re-inspire members with group-think
Group insurance has typically been a
bit of an afterthought for super funds. Sure, the insurance sub-committee members
have long been immersed in it. Adjudicating in family squabbles over death
benefit payments, for example, can be an emotionally-wrenching task not often
associated with the work of a trustee. But for the most part, the insurance offer
has been a sideshow to the business of building sophisticated investment
portfolios, marketing to attract members and lobbying for a rise in the
compulsory contribution rate.
Re-inspire members with group-think
Group insurance has typically been a bit of an afterthought for super funds. Sure, the insurance sub-committee members have long been immersed in it. Adjudicating in family squabbles over death benefit payments, for example, can be an emotionally-wrenching task not often associated with the work of a trustee. But for the most part, the insurance offer has been a sideshow to the business of building sophisticated investment portfolios, marketing to attract members and lobbying for a rise in the compulsory contribution rate. Modern Portfolio Theory still holds up: Harry Markowitz
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Despite the hype by some commentators that today’s market constitutes a ‘Black Swan’, the fall in equities markets experienced in the past year is well within normal expectations, according to Harry Markowitz. Asked by Investment & Technology recently to discuss the latest market disruption, the father of modern portfolio theory was quick to make a distinction between his work and the financial engineering for which he blames the crisis. “Portfolio theory is top down asset allocation with money allocated to professional funds managers; while financial engineering is structured products, which has led to a lot of highly leveraged products,” he said.
Modern Portfolio Theory still holds up: Harry Markowitz
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Despite the hype by some commentators that today’s market constitutes a ‘Black Swan’, the fall in equities markets experienced in the past year is well within normal expectations, according to Harry Markowitz. Asked by Investment & Technology recently to discuss the latest market disruption, the father of modern portfolio theory was quick to make a distinction between his work and the financial engineering for which he blames the crisis. “Portfolio theory is top down asset allocation with money allocated to professional funds managers; while financial engineering is structured products, which has led to a lot of highly leveraged products,” he said.
ANZ Custody attempts turnaround from Opes problems
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One year on from the demise of Opes Prime and the subsequent culling of its equity finance business, ANZ Custodian Services has made efforts to strengthen its offerings by recruiting talent from competitors, rationalising its client base and carrying out due diligence on its systems. Following an internal review of its dealings with the disgraced stockbroker, an immediate move by ANZ was to cull its equity finance business, which provided the collateral used by Opes to issue margin loans to its clients but retained bank ownership of this collateral when the broker failed, leaving many investors with nothing.
ANZ Custody attempts turnaround from Opes problems
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One year on from the demise of Opes Prime and the subsequent culling of its equity finance business, ANZ Custodian Services has made efforts to strengthen its offerings by recruiting talent from competitors, rationalising its client base and carrying out due diligence on its systems. Following an internal review of its dealings with the disgraced stockbroker, an immediate move by ANZ was to cull its equity finance business, which provided the collateral used by Opes to issue margin loans to its clients but retained bank ownership of this collateral when the broker failed, leaving many investors with nothing.
BNP Paribas continues Asian push in ‘new world order’ for custody
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Global custodians are likely to be asked to shoulder more of the potential liabilities from transaction services on behalf pension funds, rather than their smaller sub-custodians, because of the “new world order” for institutional banking. And this will be advantageous for those custodians which do provide both global and sub-custody under the one roof, according to Jacques-Philippe Marson, global chief executive of BNP Paribas Securities Services. Marson, a frequent visitor to Australia due to the custodian’s Asian expansion aspirations, says that in the new world order many financial institutions will be substantially owned by governments and this may impact on their reinvestment programs.
BNP Paribas continues Asian push in ‘new world order’ for custody
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Global custodians are likely to be asked to shoulder more of the potential liabilities from transaction services on behalf pension funds, rather than their smaller sub-custodians, because of the “new world order” for institutional banking. And this will be advantageous for those custodians which do provide both global and sub-custody under the one roof, according to Jacques-Philippe Marson, global chief executive of BNP Paribas Securities Services. Marson, a frequent visitor to Australia due to the custodian’s Asian expansion aspirations, says that in the new world order many financial institutions will be substantially owned by governments and this may impact on their reinvestment programs.
