Articles tagged by AIMA
Hedge fund managers are becoming more innovative and open to negotiation over fees in return for the ability to lock in assets for longer.
According to a survey conducted by the Alternative Investment Managers Association (AIMA), managers are changing their business models and “exploring a broader set of arrangements designed to improve the alignment of interest between themselves and their investors”.
The study, In Concert, is, AIMA claims, the most extensive undertaken by the association into the design of manager remuneration, investment terms and other methods of deepening the relationship with investors.
The Alternative Investment Management Association (AIMA) has announced a new chairman and the formation of a new AIMA Council, the Association’s global board of directors.
Taking over as AIMA Chair is Simon Lorne, vice chairman and chief legal officer, Millennium Management. He replaces the former SEC commissioner Kathleen Casey, who served as chair of AIMA from September 2012.
AIMA has also announced four new additions to the council – Robyn Grew, chief administrative officer and general counsel, Man Group; Han Ming Ho, partner, Sidley Austin; Ryan Taylor, partner and global head of compliance, Brevan Howard Asset Management; and Michael Weinberg, senior managing director, chief investment strategist, Protégé Partners.
Hedge fund managers are increasing their investment in technology to create competitive advantages and address regulatory and operational concerns, according to a new study by KPMG International, the Alternative Investment Management Association (AIMA) and the Managed Funds Association (MFA).
The study polled more than 100 global hedge fund managers representing approximately $300 billion in assets under management (AUM) and found that 90% of these firms are investing in technology to improve controls and compliance. A similar amount, 88% of respondents, said that efficiency objectives were their top reason for investing in technology.
A new survey of hedge funds finds that almost half of respondents believe that decreased market liquidity “is a secular shift that is here to stay”.
The study was conducted by State Street in partnership with the Alternative Investment Management Association (AIMA). It finds that regulations stemming from the 2008 financial crisis, coupled with historically low interest rates and slow rates of growth in the global economy, have constrained the ability of many banks to perform their traditional roles as market makers, which in turn has impacted broader market liquidity conditions.
Hedge funds outperformed equities and bonds on a risk-adjusted basis in 2016, according to the Alternative Investment Management Association (AIMA) and data provider Preqin.
Hedge funds’ risk-adjusted return, as measured by the Sharpe ratio, was 1.45 for the year, ahead of the S&P 500 (1.1), MSCI World (0.68) and Barclays Global Aggregate (0.20) indices, according to AIMA and Preqin, who based their analysis on a database of more than 3,000 funds.
The analysis finds that hedge funds also outperformed stocks and bonds on a risk-adjusted basis over three years and five years.
The Alternative Investment Management Association (AIMA) has published a guide for investment managers to help them understand and implement the requirements of the European Union’s updated Markets in Financial Instruments Directive (MiFID2), which will apply from January 2018.
The guide received significant input from leading law firm Schulte Roth & Zabel, who are also sponsors of the guide.
AIMA says the MiFID2 Guide aims to provide investment managers with a better understanding of which aspects of MiFID2 are relevant to them, what the rules require and what practical steps they can take to ensure compliance with the new framework.
new rules, according to a survey by the Alternative Investment Management Association (AIMA).
Fund managers globally that responded to the survey said that their biggest challenge regarding Mifid II is uncertainty about what the rules contained within the regulation actually mean – both their scope and substance – as well as what they perceived to be a lack of clarity relating to the cost and nature of services provided by brokers.
The survey showed that 34% of alternative asset managers are undecided about how they will pay for research following the implementation of Mifid II. Of those that have made decisions around how to pay for research, 80% plan to charge investors and the remaining 20% intend to absorb the costs themselves.
A new survey from the Alternative Investment Management Association (AIMA) and boutique prime broker GPP helps dispel the notion that bigger is always better regarding hedge funds’ asset under management (AUM).
The survey of sub-$500 million firms finds that most are able to turn a profit and expand with considerably less than $100m in assets.
The two bodies surveyed 135 alternative asset managers globally and found that the average break-even point is around $86 million in AUM, while around a third are able to break even with $50 million in assets or less.
The Alternative Investment Management Association (AIMA) has published a guide for alternative investment managers to help them understand and implement the enhanced best execution obligations under the European Union’s updated Markets in Financial Instruments Directive (MiFID2), which will apply from January 2018. AIMA’s MiFID2 Best Execution Guide, which is only available to AIMA members, outlines the MiFID2 obligation to achieve the best possible results when executing transactions. These rules were originally introduced under MiFID1 and have now been enhanced in a number of areas.
Portfolios that include managed futures funds perform better and reduce more risk than those without them, according to research jointly published by the Alternative Investment Management Association (AIMA) and Societe Generale.
The paper, titled ‘Riding the Wave’, analysed the risk and return profiles of investment portfolios including and excluding managed futures funds from 2000-2016.
For example, it showed the performance of a traditional asset mix of 60% bonds and 40% equities is enhanced with the addition of CTA strategies, which may increase the return and risk-adjusted returns (by lowering the volatility), as well as considerably lowering and shortening drawdowns.
Although it required a heavy lift from the financial services industry, the Mifid II implementation deadline came and went with minimum disruption. However, as Galen Stops points out, the real change is still yet to come.
So here’s the good news for the FX industry: the January 3 Markets in Financial Instruments Directive (Mifid) II implementation deadline passed without any significant market disruption at the start of this month.
“January 3rd went relatively smoothly, our members generally reported a largely uneventful launch although the industry is continuing to work through a number of minor issues, which is what you would expect at this point in time,” says James Kemp, managing director, Global FX Division, Global Financial Markets Association (GFMA).
The continued implementation of Mifid II will be generally characterised by lots of hard work in the background and not much immediate action in the foreground, argues Galen Stops.
We all know the metaphor of the swan gliding seemingly serenly through the water, while in fact its feet are paddling away furiously underneath and out of sight.
Well that swan is a pretty accurate representation of what the January 3 go- live date of MiFID II was like for many market participants, by all accounts. A huge amount of work had gone in behind the scenes to make sure that firms were compliant so that, when it arrived, the big day passed largely uneventfully.
Hedge funds have produced more consistent and steadier returns than equities or bonds over both the short term and the long term, according to new research by Preqin, the data provider, and the Alternative Investment Management Association (AIMA), the global representative of alternative investment managers.
The organisations found that hedge funds have out-performed equities and bonds on a risk-adjusted basis over one, three, five and 10-year periods. Risk-adjusted returns, represented by the Sharpe ratio, reflect the volatility of the returns as well as the returns themselves.
The Alternative Investment Management Association (AIMA) has appointed Claire Van Wyk-Allan as its new head of Canada.
Van Wyk-Allan, who takes over on April 2, joins AIMA from RBC Global Asset Management, where she served as business development manager, advisor channel sales.
Prior to joining RBC in 2013, she worked for Arrow Capital Management, where she spent almost four years as regional manager, covering advisors across Ontario.
She has been an active member of AIMA for almost a decade, including serving as a member of the AIMA Canada board since 2014. She has also been a two-time co-chair for Help for Children’s Hedge Funds Care Canada Gala.
The Alternative Investment Management Association (AIMA), has published a position paper entitled Brexit and Alternative Asset Managers: Managing the Impact.
The paper offers a detailed assessment of what will need to be addressed during the transition period that has recently been agreed between the UK and the EU. AIMA says it believes that addressing these points will minimise disruption for UK fund managers and EU investors when the UK leaves the EU.
The analysis is based on the assumption that the UK will leave the EU’s single market and that many existing cross-border provisions in EU legislation will cease to apply for UK firms.
Some of the most senior men and women in the global hedge fund industry have put forward their collective vision of the hedge fund firm of the future in a new report published by the Alternative Investment Management Association.
The paper, Perspectives: Industry Leaders on the Future of the Hedge Fund Industry, is sponsored by Aberdeen Standard Investments, the global investment company and is based on what AIMA terms “candid and wide-ranging conversations” with 25 of the leading figures in the industry.
Hedge funds globally have allocated at least $59 billion to responsible investment (RI), according to a survey by the Alternative Investment Management Association (AIMA) and the Cayman Alternative Investment Summit (CAIS).
The survey of 80 asset managers with $550 billion in hedge fund assets under management (AUM) provides evidence of an increasing level of demand for RI across the hedge fund industry, with around 40% of the respondents saying they are already investing using responsible investment principles, with total assets in such investments worth $59 billion – a little over 10% of the respondents' combined hedge fund AUM.