DOCSLIB.ORG

Introduction to Hedge Funds Hedge Funds –A Separate Asset Class?

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Introduction to Hedge Funds Hedge Funds –A Separate Asset Class? Introduction to Hedge Funds Hedge funds –a separate asset class? History, definition and characteristics of hedge funds Risks, returns, correlations Benchmarks and long term return outlook Hedge funds in the context of a traditional investment portfolio Conclusions Introduction to Hedge Funds 2 Alternativeinvestments Alternative Asset Class Forecasted Demand Growth Hedge funds High Private equity High Commodities High Credit (HY/ABS/MBS/CDOs) High Real estate (resid., comm., infrastr.) High Other (insurance, art, hybrids, etc) High Introduction to Hedge Funds 3 Development of the hedge fund industry, 20% growth pa 1949: A.W. Jones launched the first hedge fund 1967: George Sorosstarted out 2004: Hedge fund industry reached USD 1,000 bn mark 2007: Industry at USD 1,700 bn, managed by 3,000-4,000 HF managers in 10,000-15,000 HFs $1,800,000 $1,745,214 $1,700,000 $1,604,600 $1,600,000 $1,464,526 $1,500,000 USD 1 bn mark $1,400,000 reached $1,300,000 $1,200,000 Institutional $1,105,385 $1,100,000 Investors enter M) $1,000,000 $972,608 M $ $900,000 n LTCM $820,009 I ( $800,000 s t e $700,000 ss $625,554 A $600,000 $539,060 FedIR $490,580 $500,000 $456,430 hike $374,770 $400,000 $367,560 $300,000 $256,720 $185,750 $167,790 $167,360 $200,000 $99,436 $126,474 $95,720 $91,431 $73,585 $60,222 $58,370 $57,407 $55,340 $46,545 $70,635 $46,907 $58,663 $100,000 $38,910 $27,861 $36,918 $23,336 $8,463 $14,698 $4,406 $0 ($1,141) ($100,000) 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Q1 Q2 2007 2007 Source: HFR Industry Report 2007 Q2 EstInimtroadtuecdt iAons tsoe Htsedge Funds Net Asset Flow 4 Hedge funds are a kind of progressive mutual funds “OLD”definition of hedge funds “All forms of investment funds, companies, and private partnerships that » use derivatives intensively for hedging or for directional investing » and/or engage in short-selling » and/or use significant leverage through borrowing.” “NEW”definition of hedge funds Active, absolute return oriented investment funds Introduction to Hedge Funds 5 Hedge funds are more flexible than mutual funds Specific hedge fund characteristics Active management, take advantage of market inefficiencies Focus on absolute performance and risk management Great flexibility reg. asset classes, markets, trading styles, and instruments Performance fee, own money invested Infrequent liquidity and redemption dates High minimum investment levels Limited regulation and transparency, albeit improving Introduction to Hedge Funds 6 It is important to distinguishbetween FoHFsandHFs ‘Hedge funds‘ Funds of hedge funds Hedge funds HF1 HF2 HF3 HF n Introduction to Hedge Funds 7 Commonly used legal structures Fund of funds Hedge fund Managed account Investment fund Structured product Offshore limited co. Principal protected note US limited partnership Index certificate (fund-linked note) Swiss mutual fund Call option Swiss participation co. Total return swap SICAV CFO Unit trust Convertible Other Reinsurance-linked note Introduction to Hedge Funds 8 Typical offshore structureof a fund offunds Investor Sponsor Investment Auditor Manager Fund of Funds Ltd. Investment Administrator Advisor Custodian Hedge funds Introduction to Hedge Funds 9 Typical offshore structureof ahedgefund Investor Investment Auditor Manager/Sponsor HedgeFund Ltd. Investment Administrator Advisor Prime Broker Securities ExecutionBrokers Introduction to Hedge Funds 10 The roleofthedifferentcounterparties HedgeFundLtd Offshore company with articlesofassociation, directors, andseveral share classes Investor Holder ofthenon-voting,participating shares Sponsor Holder ofthe voting, non-participating shares Investment Manager Discretionary portfolio manager, typically offshore Investment Advisor Non-discretionary ‘advisor’, typically onshore Auditor Audits the balance sheet and P&L Introduction to Hedge Funds 11 The rolesoftheprimebrokerandthe administrator Primebroker Stocklendingandrepos Leverage Custodyofportfolio securitiesand cash Tradeexecutionandsettlement Backoffice facilities Officespace Legalassistance for setup Marketingsupport („capital introduction“) Administrator Independent NAV calculation Handling of subscriptions and redemptions Introduction to Hedge Funds 12 Master-feeder structures US EU Offshore investors investors investors HedgeFund HedgeFund HedgeFund LP (Cayman) Ltd. (Dublin) Ltd. HedgeFund Portfolio Ltd. Introduction to Hedge Funds 13 Cayman and theUS arethe most popular hedgefunddomiciles Hedge Fund Domiciles Other Sweden Channel Islands 7% 1% 3% Luxembourg 2% US Dublin 30% 4% Bahamas 2% Bermuda 8% BVI 9% Cayman Islands 34% Data: HFR,Harcourtestimates Introduction to Hedge Funds 14 2/3ofhedgefundmanagers are basedintheUS, but Europe and Asia are growing faster Hedge Fund Management Company Locations Asia 10% Greater NY 36% Other Europe 8% London Other US 18% 28% Data: Harcourtestimates Introduction to Hedge Funds 15 Roughly20%of allassets investedinhedge fundscomeout of Switzerland (directly & indirectly) Hedge Fund Asset Origins Other 25% USA 50% Japan 5% Switzerland 20% Data: Harcourtestimates Introduction to Hedge Funds 16 Hedge funds –a separate asset class? History, definition and characteristics of hedge funds Risks, returns, correlations Benchmarks and long term return outlook Hedge funds in the context of a traditional investment portfolio Conclusions Introduction to Hedge Funds 17 Harcourt strategyclassification framework Fixed Income Equities Commodities Relative Value Fixed Relative Value Equity Relative Value Commodity Income Strategies: Strategies: Strategies: 1. Multi-Strategy Fixed Income 9. Multi-Strategy Equity 22. Multi-Strategy Commodity Relative 2. Fixed Income Arbitrage 10. Event Driven Equity 23. Relative Value Energy Value 3. ABS & MBS 11. Convertible & Volatility Arbitrage 4. Asset-Based Lending 12. Structured Equity Linked 13. Statistical Arbitrage 14. Market Neutral Equity Directional Fixed Income Directional Equity Strategies: Directional Commodity Strategies: 15. Long/Short Global Equity Strategies: 5. Long/Short Rates 16. Long/Short US Equity 24. Metals Trading 6. Long/Short Credit 17. Long/Short European Equity 25. Agricultural Trading 7. Distressed Securities 18. Long/Short Japanese Equity 26. Energy Trading Directional 8. Emerging Markets Debt 19. Long/Short EM Equity 27. Power & Emissions Trading 20. Long/Short Sectors 21.Short-Biased Equity Directional Multi-Asset Class Strategies: 28.LT Trend-Following CTAs 29.ST Systematic Trading CTAs 30. Global Macro 31. Insurance-Linked Introduction to Hedge Funds 18 Long/short equity is the most popular hedge fund strategy Hedge fund strategies (by # of funds) Hedge fund strategies (by AUM) CTAs & Macro 14% CTAs & Macro Directional 22% Fixed Income Long/Short 6% Equity 39% Relative Value Long/Short Fixed Income Equity 6% 48% Directional Fixed Income 8% Relative Value Equity 26% Relative Value Relative Value Fixed Income Equity 5% 26% Data: HFR, Harcourtestimates Introduction to Hedge Funds 19 Mostimportant hedgefundrisks Marketrisks: Stockmarket beta,interestrateduration,credit spreads, FX movements Strategy risks: Supply/demandineach strategy eg inefficiencies,spreads, capacity;trends/market patterns; specificstrategy risks eg mergerdealbreaks,mortgage prepayments,realized and impliedvolatilities Leverage: Amplificationeffect,funding/margincall risk Liquidity risks: Bid-askspread risk,investor redemptionrisk Valuation risks: Mark-to-market risk, independent valuations Companyrisks: Growthof AUM, style drift, ‘keypeople‘risk, backoffice risk, legal risk Introduction to Hedge Funds 20 Leverage: many hedge fund strategies are not or only moderately leveraged No leverage (0 -1.0 : 1) Some long/short equity funds Distressed securities Short-biased equity Low leverage (1.1 -2.0 : 1) Most long/short equity funds Most long/short credit funds Merger arbitrage Moderate leverage (2.0 -7.0 : 1) Convertible arbitrage Statistical arbitrage CTAs Mortgage-backed securities arbitrage High leverage (8.0 -20.0 : 1) Fixed income arbitrage Introduction to Hedge Funds 21 Leverage vs. market exposure: are hedge funds riskier than traditional mutual funds? Swiss Stocks Mutual Fund: 95% long stocks, 5% cash => net long exposure of 95% => leverage of 0.95:1 Long/Short US Equity Hedge Fund: 85% long stocks, 45% short stocks => net long exposure of 40% => leverage of 1.3:1 US Convertible Arbitrage Fund: 300% long convertibles, short delta stocks, short interest rates, short credit => net long exposure of 0% => leverage of 6.0:1 Fixed Income Arbitrage Fund: 800% long bonds, 800% short bonds => net long exposure of 0% => leverage of 16.0:1 CTA: 20% margin in long and short futures positions => long exposure 200%, short exposure 200% => leverage of 4.0:1 => Conclusion: leverage should always be considered in connection with actual market risk exposure, as well as basis risk and other risks Introduction to Hedge Funds 22 Hedge funds have performed similar to stocks and bonds over the last ten years 16% Sector 14% L/S Equity Distressed 12% Hedge Fund Index EM Merger Arb 10% Macro CV Arb MBS pa n r 8% MN Equity u Fund of Funds t FI HY e MSCI World R JPM 6% FI Arb CTAs 4% 2% Short 0% 0% 5% 10% 15% 20% 25% Standard deviation pa Data: HFRHF, Barclay CTAIndices 1994 -Aug 2007 Introduction to Hedge Funds 23 All hedge fund strategies have outperformed stocks since January 2000 250 200 150 100 50 00 01 02 03 04 05 06 07 00 01 02 03 04 05 06 07 00 01 02 03 04 05 06 07 99 00 01 02 03 04 05 06 - - - - - - - - - - - - - - - - - - - - - - - - r- r- r- r- r- r- r- r- n n n n n n n n c c c c c c c c p p p p p p p p a a a a a a a a u u u u u u u u e e e e e e e e e e e e e e e e J J J J J J J J M M M M M M M M D S D S D S D S D S D S D S D S MSCI World $ HFR HF Index CV arb Distressed Eq hedge FI arb MBS Merger arb Sector Short-selling CTAs Funds of funds Data:HFR, Barclay Introduction to Hedge Funds 24 Each strategyhas a differentrisk/return profile 2007 July YTD Ret pa Ret pa Stdev pa Corr MSCI Est.
Load more

Recommended publications
  • UIT Principal Paydown
    UNIT INVESTMENT TRUSTS SUPPLEMENTAL PRINCIPAL PAYDOWN REPORT What Is A UIT Sponsors may not add bonds to a portfolio once it is closed. However, they may advise Principal Paydown? the trustee to dispose of certain bonds under Unit Investment Trusts (UIT’s) are a specialized special circumstances that might adversely kind of investment company which assembles affect the value of the trust. These conditions a fixed portfolio of securities (usually tax include potential or actual default of principal exempt municipal bonds) and then offers or interest, institution of domestic lawsuits interest in that portfolio to the public. The against an issuer, a decline in projected minimum investment usually ranges from income pledged for debt service on revenue $1,000 to $5,000. The issues are purchased bonds, advance refunding (calls) and ex- with the intent of holding them until maturity, changes in a refunding offer. usually twenty years or more. No new issues The proceeds from any sale of redemption can be added to the trust. Therefore, the return of bonds may not be reinvested in the trust. on the investment remains the same until Instead, they are distributed to the unit holders portfolio bonds mature, are called or are sold. as distributions of principal. The distribution The firm that organizes the Unit Trust is of these principal amounts results in a known as its “sponsor”. The sponsor buys a corresponding decrease in the assets of the fixed amount of bonds for the trust and then trust and a reduction in the value per unit. closes the fund. The bonds are then deposited Since these distributions are received as cash with the trustee, usually a bank, which provides payments and since the asset value per unit services including issuance of certificates of is decreased for the distribution amount, it ownership, safekeeping of the securities, is necessary to include the values of these interest collection and principal receipts for distributions in estate valuations for matured or called shares, and check process- IRS 706 purposes.
    [Show full text]
  • AXA Framlington Range of Authorised Unit Trust Schemes
    Prospectus for the AXA Framlington Range of Authorised Unit Trust Schemes Valid as at 03 April 2020 This document constitutes the prospectus for the AXA Framlington Range of Authorised Unit Trust Schemes, each a unit trust authorised by the Financial Conduct Authority (“FCA”) and constituted pursuant to the Collective Investment Schemes Sourcebook (the “COLL Sourcebook”) which forms part of the FCA’s Handbook of Rules and Guidance. This prospectus has been prepared in accordance with the rules contained in the COLL Sourcebook. IMPORTANT: IF YOU ARE IN ANY DOUBT ABOUT THE CONTENTS OF THIS PROSPECTUS YOU SHOULD CONSULT YOUR FINANCIAL ADVISER Important Information AXA Investment Managers UK Limited, the authorised fund manager of the Funds, (the “Manager”) is the person responsible for the information contained in this Prospectus. To the best of its knowledge and belief (having taken all reasonable care to ensure that such is the case) the information contained in this Prospectus does not contain any untrue or misleading statement or omit any matters required by the COLL Sourcebook to be included in it. The Manager accepts responsibility accordingly. This Prospectus is based on information, law and practice at the date of this Prospectus. The delivery of this Prospectus (whether or not accompanied by any reports) or the issue of Units shall not, under any circumstances, create any implication that the affairs of the Funds have not changed since the date of this Prospectus. The Manager cannot be bound by an out of date prospectus when it has issued a new prospectus and investors should check with the Manager that this is the most recently published prospectus.
    [Show full text]
  • The Unit Investment Trust: Maintaining Integrity Through Time
    The Unit Investment Trust: Maintaining Integrity Through Time OLDEN LANE WHITEPAPER NO. 1 JANUARY 2016 “ The task is not so much to see what no one has yet seen, but to think what nobody yet has thought about that which everybody sees.” - Arthur Schopenhauer Today, the asset management business is adapting to significant shifts in investor behavior.1 Among the most observable trends are an increasing sensitivity to fees, a growing appetite for alternative streams of return and a pronounced desire for regulated investment vehicles.2 At the same time, traditional asset managers are confronting the dual threat of disintermediation and margin pressure as at no time in recent memory.3 Against this backdrop, a lesser known corner of the investment products universe is gaining increased attention from investors and asset managers alike. While unit investment trusts (each, a “UIT”, and together, “UITs”) have evolved already “far beyond their humble origins as fixed packages of municipal bonds” 4 and have seen increasing inflows in recent years, the possibilities for this fund wrapper seem far from exhausted. 5 In fact, many believe that the UIT can play an important part in the portfolios of today’s retail and institutional investors alike.6 Unit investment trusts enjoy a colorful and dynamic history – from their earliest days as “fixed trusts” Through each of to a successful run as a tax favored vehicle for municipal bond portfolios. More recently the UIT has these incarnations, played a prominent role in introducing customers to the basic concepts of smart beta investing, the UIT has retained served as the underlying structure for the first Exchange Traded Funds and thrived as an equity portfolio wrapper for the retail distribution channel.
    [Show full text]
  • Introduction and Overview of 40 Act Liquid Alternative Funds
    Introduction and Overview of 40 Act Liquid Alternative Funds July 2013 Citi Prime Finance Introduction and Overview of 40 Act Liquid Alternative Funds I. Introduction 5 II. Overview of Alternative Open-End Mutual Funds 6 Single-Manager Mutual Funds 6 Multi-Alternative Mutual Funds 8 Managed Futures Mutual Funds 9 III. Overview of Alternative Closed-End Funds 11 Alternative Exchange-Traded Funds 11 Continuously Offered Interval or Tender Offer Funds 12 Business Development Companies 13 Unit Investment Trusts 14 IV. Requirements for 40 Act Liquid Alternative Funds 15 Registration and Regulatory Filings 15 Key Service Providers 16 V. Marketing and Distributing 40 Act Liquid Alternative Funds 17 Mutual Fund Share Classes 17 Distribution Channels 19 Marketing Strategy 20 Conclusion 22 Introduction and Overview of 40 Act Liquid Alternative Funds | 3 Section I: Introduction and Overview of 40 Act Liquid Alternative Funds This document is an introduction to ’40 Act funds for hedge fund managers exploring the possibilities available within the publically offered funds market in the United States. The document is not a comprehensive manual for the public funds market; instead, it is a primer for the purpose of introducing the different fund products and some of their high-level requirements. This document does not seek to provide any legal advice. We do not intend to provide any opinion in this document that could be considered legal advice by our team. We would advise all firms looking at these products to engage with a qualified law firm or outside general counsel to review the detailed implications of moving into the public markets and engaging with United States regulators of those markets.
    [Show full text]
  • Singapore Prospectus
    FIRST EAGLE AMUNDI established in Luxembourg SINGAPORE PROSPECTUS Dated 4 December 2020 This is a replacement Singapore Prospectus lodged with the Monetary Authority of Singapore (the "Authority") on 6 May 2021 pursuant to Section 298 of the Securities and Futures Act, Chapter 289 of Singapore, and it replaces the Singapore Prospectus registered by the Authority on 4 December 2020. This Singapore Prospectus incorporates and is not valid without the attached Luxembourg Prospectus dated March 2021 (as amended from time to time) for First Eagle Amundi (the "Luxembourg Prospectus"). First Eagle Amundi (the "Company") is an investment company with variable capital (SICAV) incorporated under Luxembourg law and is constituted outside Singapore. The Company has appointed Amundi Singapore Limited (whose details appear in paragraph 2.4 of this Singapore Prospectus) as its agent for service of process in Singapore and as its representative in Singapore (the "Singapore Representative"). I FIRST EAGLE AMUNDI IMPORTANT INFORMATION The collective investment schemes offered in this Singapore Prospectus (each a "Sub-Fund" and collectively the "Sub-Funds") are each a recognised scheme under the Securities and Futures Act (Chapter 289 of Singapore) ("SFA"). A copy of this Singapore Prospectus has been lodged with and registered by the Monetary Authority of Singapore (the "Authority"). The Authority assumes no responsibility for the contents of this Singapore Prospectus and the registration of this Singapore Prospectus by the Authority does not imply that the SFA or any other legal or regulatory requirements have been complied with. The Authority has not, in any way, considered the investment merits of the Sub-Funds.
    [Show full text]
  • Cis Unit Pricing
    CIS UNIT PRICING Report from the Emerging Markets Committee of the International Organization of Securities Commissions May 1999 TABLE OF CONTENTS Page INTRODUCTION: 1 METHODOLOGY: 3 ANALYSIS OF THE RESPONSES TO THE QUESTIONNAIRE ON CIS UNIT PRICING: 1. Criteria used for valuating variable and fixed income ..... 5 2. Who changes the valuation criteria ............................. 9 3. Unit price and net worth disclosure periodicity ............. 11 4. Unit price to be used for Purchase............................... 15 5. Unit price to be used for Redemption / Payment date .... 17 6. Auditing requirements ............................................... 20 7. Disclosure requirements ............................................. 21 CONCLUSION: 23 Appendices Appendix A: Condensed Responses 24 Appendix B: Asset Valuation (Chapter 7 of Part 1 of the IOSCO Principles for the regulation on Collective Investment Schemes) 41 Appendix C: Asset Valuation (Chapter IV of the COSRA Report on the Oversight of Collective Investment Schemes) 44 1 INTRODUCTION: In addition to the scenario of today’s worlds market increased globalization, a specific phenomenon can be observed in Emerging Markets: the development of Collective Investment Schemes (CIS). The IOSCO Emerging Markets Committee Working Group on Investment Management (EMC WG-5) studied this specific development in a Survey on CIS Cross-Border Activities. The main conclusion of that survey was that in emerging markets CIS development is mainly domestic: cross-border being severely restricted in some countries and mainly import-oriented. Even though, the domestic development of CIS is a reality, several emerging market countries issued new regulation or substantially changed their regulation during the past few years. A need therefore arose to look again at the CIS issue and to compare how a number of key subjects regarding CIS regulation were addressed in those markets.
    [Show full text]
  • AMUNDI UCITS FGR FUNDS PROSPECTUS Dated April 2020
    AMUNDI UCITS FGR FUNDS PROSPECTUS Dated April 2020 TABLE OF CONTENTS Page DIRECTORY ..................................................................................................................................... 1 IMPORTANT NOTICE ......................................................................................................................... 2 1. Definitions ................................................................................................................... 4 2. The Investment Opportunity ........................................................................................ 8 3. Risk Factors ................................................................................................................. 9 4. Legal and Regulatory Structure of the Funds ............................................................ 15 5. Fund Management and Governance .......................................................................... 18 6. Admission to the Fund. Subscriptions ....................................................................... 24 7. Redemption and Transfer of Units ............................................................................. 30 8. Costs and Expenses .................................................................................................... 35 9. Valuation .................................................................................................................... 38 10. Reporting to Investors ...............................................................................................
    [Show full text]
  • Choosing an Investment Vehicle European Real Estate Fund Regimes
    Choosing an investment vehicle European Real Estate Fund Regimes May 2019 www.pwc.com/realestate This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors. Introduction This booklet aims to provide an overview of the most common European collective investment vehicles (CIVs) suitable for investment in real estate, including their legal form, as well as their regulatory and tax position. The AIFM Directive entered into force on Many countries offer attractive tax facilities, 22 July 2013 and has been implemented by including tax exemptions, to their local real EU Member States, which had to consider estate CIVs. In many countries, these tax both regulatory matters and changes to facilities are not available to real estate CIVs Uwe Stoschek fund and investor taxation. This has resulted investing from a different jurisdiction. Therefore, in significant changes in the European real there are still important steps to take until there Partner, estate fund landscape. AIFMD has forced is a level playing field for real estate CIVs also Global Real Estate Tax fund managers and investors to change from a tax perspective. Our country specialists Leader their approach and look not only at national mentioned in this publication will be very happy PwC Germany rules, but also at EU rules and guidelines. to help you by providing further information on At the same time, the new passports for any of the fund vehicles described. +49 30 2636-5286 professional investor funds provide new +49 160 5820641 options. Managers must consider where they [email protected] apply for authorisation to obtain the licence, paying close attention to legal and tax aspects, as well as available business infrastructure and personal resources.
    [Show full text]
  • M&G Investment Funds
    M&G Investment Funds (3) Interim Long Report and unaudited Financial Statements for the six months ended 31 December 2020 Contents Authorised Corporate Director’s Report .......... 1 Directors’ statement .......................... 4 Financial statements and notes.................. 5 Authorised Corporate Director’s Reports, including the financial highlights and financial statements and notes for: M&G Corporate Bond Fund .................... 6 M&G Dividend Fund .......................... 38 M&G Emerging Markets Bond Fund............. 61 M&G European Corporate Bond Fund ........... 87 M&G Global Government Bond Fund............ 112 M&G Recovery Fund .......................... 135 M&G Smaller Companies Fund ................. 159 Other regulatory disclosures .................... 178 Glossary ..................................... 179 M&G Investment Funds (3) Interim Long Report and unaudited Financial Statements • December 2020 Authorised Corporate Director’s Report The Authorised Corporate Director (ACD) of M&G A shareholder is not liable for the debts of the Company Investment Funds (3) presents its Interim Long Report and will never be liable to make any further payment to and unaudited Financial Statements for the six months the Company after paying the purchase price of the ended 31 December 2020. shares. The unaudited financial statements of Fund managers M&G Investment Funds (3) and the investment report The following fund managers are employed by M&G FA and unaudited financial statements and notes of each Limited which is an associate of M&G Securities sub-fund are presented in their individual sections of Limited. this report as set out in the contents page. M&G Corporate Bond Fund Please note that we have included an explanation of key Richard Woolnough & Ben Lord investment terminology in the ‘Glossary’ (at the back of this report).
    [Show full text]
  • ASSESSMENT of the ASSET MANAGEMENT INDUSTRY in the PHILIPPINES the Case of the Unit Investment Trust Fund (UITF) Sector
    ASSESSMENT OF THE ASSET MANAGEMENT INDUSTRY IN THE PHILIPPINES The Case of the Unit Investment Trust Fund (UITF) Sector ARLENE GUTIERREZ Arlene C. Gutierrez Research Consultant Gov. Jose B. Fernandez, Jr. Center for Sustainable Finance Asian Institute of Management is report was conducted independently by Center for Sustainable Finance Asian Institute of Management, but was made possible through the sponsorship of CFA Society Philippines. © 2020 CFA Society Philippines. All rights reserved. ABOUT THE AUTHOR Arlene C. Gutierrez is an Assistant Professor at the Department of Agribusiness Management and Entrepreneurship, College of Economics and Management, University of the Philippines Los Baños. roughout the course of her teaching career, she has handled courses on Foundations of Management, Agribusiness Research and Methodologies, Entrepreneurship, Strategic Management, Quantitative Business Analysis, Financial Management and Investment Management. She has also published journal articles on topics related to Agribusiness and Investments. She finished her degree on BS Agribusiness Management from the University of the Philippines Los Baños in 2011 and her degree on Master in Business Administration (with distinction) from the Asian Institute Management in 2015. Ms. Gutierrez is currently serving as the Associate Dean of the College of Economics and Management, University of the Philippines Los Baños and has recently been awarded the 2020 UPLB Outstanding Teacher Award ( Junior Category). © 2020 CFA Society Philippines. All rights reserved. FOREWORD e Philippine asset management business has grown by leaps and bounds over the past few years. When I started as a young banker, most of the individual clients I dealt with simply looked for the time deposit with the highest rate.
    [Show full text]
  • Wealth & Investment Third Party Product Providers
    Investec Wealth & Investment is mandated by the following product suppliers to distribute investment products: Absa Fund Managers Ltd Investec Wealth & Investment (UK) Alexander Forbes Investments Ltd Investment Solutions Limited (Alexander Forbes) Allan Gray Investment Services (Pty) Ltd Momentum Wealth (Pty) Ltd Allan Gray Unit Trust Management (Pty) Ltd Nedgroup Collective Investments Ltd Boutique Collective Investments (Pty) Ltd Ninety One Guernsey Limited The Carlyle Group Ninety One Investment Platform (Pty) Ltd Citigroup Global Markets Limited Ninety One SA (Pty) Ltd Coronation Asset Management (Pty) Ltd Old Mutual Investment Services (Pty) Ltd Foord Asset Management (Pty) Ltd Old Mutual Life Assurance Company (SA) Ltd Franklin Templeton Investments SA (Pty) Ltd Praxis International Fund Management Limited Glacier Financial Solutions (Pty) Ltd Prudential Investment Managers (SA) (Pty) Ltd Goldman Sachs International Sanlam Life Insurance Ltd Hollard Life Assurance Co Ltd Stanlib Asset Management (Ireland) Ltd Investec Bank Switzerland AG Stenham SA (Pty) Ltd Investec Corporate and Institutional Banking (a division of Investec Bank Ltd) Investec Life Limited Investec Property Group Investec Specialist Investments Fund Managers (Pty) Ltd Investec Wealth & Investment (Mauritius) Limited Portfolio Management | Stockbroking | Wealth Management Investec Wealth & Investment (W&I) a division of Investec Securities Proprietary Limited. Reg No.1972/008905/07. Member of the JSE Equity, Equity Derivatives, Currency Derivatives, Bond Derivatives and Interest Rate Derivatives Markets. An authorised financial services provider No.15886. A registered credit provider registration No.NCRCP262..
    [Show full text]
  • BCT (MPF) Pro Choice (Master Trust Scheme) – Product Summary September 2018 Version Its Volatility Is Expected to Be High
    ▲Risk & Return Level 5 Whilst the underlying approved pooled investment fund (“APIF”) aims to achieve absolute returns, there may be circumstances under which this is not possible. Therefore, the absolute positive returns are not guaranteed. The constituent fund aims at achieving a high long-term return among BCT funds; 6 BCT (Pro) MPF Conservative Fund does not guarantee the repayment of capital. An investment in the MPF Conservative Fund is not the 5 High BCT (MPF) Pro Choice (Master Trust Scheme) – Product Summary September 2018 Version its volatility is expected to be high. same as placing funds on deposit with a bank or deposit taking company and there is no guarantee that the investment can be redeemed Important Notes at the subscription value. The MPF Conservative Fund is not subject to the supervision of the Hong Kong Monetary Authority. Fees • You should consider your own risk tolerance level and financial circumstances before making any investment choices or investing according to the Default Investment Strategy (“DIS”). When, in your selection of funds or the DIS, you are in doubt as to whether a certain fund or the DIS is suitable for you (including whether it is consistent with your investment objective), you should seek financial and/or professional advice and choose the investment choice(s) most suitable for you taking into account your circumstances. The constituent fund aims at achieving a medium to high long-term return among and charges of MPF Conservative Fund can be deducted from either (i) the assets of the fund or (ii) members’ account by way of unit 4 Medium to High • In the event that you do not make any investment choices, please be reminded that your contributions made and/or accrued benefits transferred into the Plan will be invested in accordance with the DIS, which may not necessarily be suitable for you.
    [Show full text]