Fund Distribution: A Changed Landscape. Independence Commitment Expertise

Transcription

1 Fund Distribution: A Changed Landscape Independence Commitment Expertise

2 Welcome Mike Kirby Managing Principal, KB Associates 2

3 3

4 International Fund Distribution; Key Trends 2013 Ross Allen Consultant, KB Associates 4

5 Global Fund Assets 2003:Total Fund Assets 11 trillion 2013: Total Fund Assets 26.5 trillion Source: EFAMA March

6 Europe Assets by Domicile Total Fund Assets 9.2 TR Source: EFAMA Q

7 Europe Source: Lipper - Retail Market % (estimated market value EFAMA/KBA) 7

8 Bn Europe UCITS Sales 12 Month Total: 247 Bn Source: EFAMA July

9 Europe UCITS Sales Bn 12 Month Total Equity: 72 Bn 12 Month Total Bond: 174 Bn Source: EFAMA July

10 Europe Fund Sales excluding MMs Source: Lipper NOTE- Excludes Cross-Border Sales 10

11 Europe UCITS Sales EUR Bn Source: EFAMA

12 Europe Changing Shape Source: Lipper 2012/KBA 12

13 Investment Strategies Source: Lipper totals exclude Fund of Fund assets 13

14 Distribution Channels: Europe Source: Lipper

15 UCITS Investor Base Source: EFAMA

16 Independence Commitment Expertise 16

17 AIFMD Implications for US Managers: A Legal Snapshot Jason S. Kaplan Partner, Schulte Roth & Zabel LLP 17

18 Hedge Fund Distribution in an AIFMD World Moderator: Michael Parton, Executive Director, KB Associates (Cayman) Ltd Speakers: Kenny D. King, Executive Director, J.P. Morgan Mikael A. Johnson, Lead Partner, KPMG LLP Robert Duggan, Partner, Mourant Ozannes Edward J. Fassano, COO, CFO & CCO, Seawolf Capital LLC 18

19 UCITS V & VI Implications for US Managers: A Legal Snapshot Barbara Cronin Associate, Dechert LLP 19

20 UCITS V Background and State of Play EU Commission s original concerns? Caps on manager remuneration and performance fees - not part of the original agenda July 2013: European Parliament adopted amended version of its ECON committee report on UCITS V

21 UCITS V - Agenda Depositary rules Remuneration rules Penalties for breach Alignment with AIFMD

22 UCITS V - Depositary Rules Eligibility No passport Re-hypothecation of assets? Delegation Liability - new standard - no contractual discharge

23 UCITS V - Remuneration Alignment with AIFMD Bonus cap defeated at European Parliament ESMA guidelines on proportionality Look-through to self-managed funds? Covered staff Disclosure requirements Regulatory monitoring

24 UCITS V - Penalties Prescribed investor protection provisions Prescribed sanctions Whistle blowing provisions No distinction between self-managed funds and funds with external management company

25 UCITS V Impact on Industry Costs Scope of depositary services Remuneration - change to risk profile Variable remuneration

26 UCITS VI More Changes! Not industry driven Overlap with other EU regulation Focus on: 1) Eligible assets and use of derivatives 2) Efficient portfolio management techniques 3) OTC Derivatives 4) Extraordinary liquidity management rules 5) Depositary passport 6) Money market funds 7) Long term investments 8) Addressing some of the issues of UCITS IV

27 Outlook and Timing UCITS V & VI UCITS V Trilogue negotiations ESMA guidance 2015/2016 UCITS VI White Paper

28 Dechert LLP Definitive advice Practical guidance Powerful advocacy dechert.com Almaty Austin Beijing Boston Brussels Charlotte Chicago Dubai Dublin Frankfurt Hartford Hong Kong London Los Angeles Luxembourg Moscow Munich New York Orange County Paris Philadelphia Princeton San Francisco Silicon Valley Tbilisi Washington, D.C. Dechert practices as a limited liability partnership or limited liability company other than in Almaty, Dublin, Hong Kong, Luxembourg and Tbilisi.

29 UCITS Distribution Opportunities; How to Make it Happen? Moderator: Jill Paitchel, Executive Director, KB Associates America Speakers: David Giannone, Vice President, BNP Paribas Steve Williams, CEO, Brook Green Capital Ltd Kevin Ferguson, Partner, Harding Loevner LP Patrick Mc Neils, Managing Director, Seix Investment Advisors LLC 29

30 What Investors Really Want? Moderator: Mike Kirby, Managing Principal, KB Associates Speakers: Christopher J. Addy, President & CEO, Castle Hall Alternatives Jeffrey Fulk, Vice President, Guggenheim Partners, LLC Clark Cheng, Head of Alternative Investment Research, HSBC Steve MacRae, Managing Director, SEI 30

31 Closing Remarks Mike Kirby, Managing Principal, KB Associates 31

32 KB Associates Offshore Fund Consulting Centennial Towers, West Bay, PO Box 31249, Grand Cayman, KY11205 Cayman Islands Tel: Fleming Court Fleming s Place Dublin 4 Ireland Tel: Brook Street London W1K 5DB United Kingdom Tel: Luxembourg Tel: Madison Ave 8th Floor New York, NY USA Tel: info@kbassociates.ie 32