UCITS Innovation workshop

Transcription

1 sponsors: UCITS Innovation workshop media partners:

2 UCITS INNOVATION WORKSHOP Panellists: Evie Lamprou, Head of Distribution - Europe, China Post Global Tobias Ettlin, Compliance Officer, AQR Capital Management (Europe) LLP Nigel Hellewell, COO, Equitile Investments Ltd. Jeffrey Sherman, Deputy CIO, Doubleline Capital Jérémie Vuillquez, Senior Legal Counsel, Invesco Ltd. Ali Ziai, Director, Orbis Investment Management (Luxembourg) S.A. Moderators: Isabelle Lebbe, Partner, Arendt & Medernach Chris Edge, Managing Director, PwC

3 Tobias Ettlin Compliance Officer AQR Capital Management (Europe) LLP

4 AQR s EuroTrip ALFI London Conference 2017 AQR Capital Management Europe LLP Charles House 5-11 Regent Street London SW1Y 4LR

5 ALFI London Conference 2017 Intro Challenges Options Considered Solution chosen Lessons Learned 5

6 Evie Lamprou Head of Distribution Europe China Post Global

7 China Post Global An Innovation Case Study ALFI UCITS Innovation Workshop London, May

8 About us China Post Global acquired RBS s ETFs in 2016 a Luxembourg domiciled ETF range, with over ten years of track record China Post Global is the international arm of China Post Fund, a mainland active asset manager with over USD 26bn of assets First Chinese asset manager to acquire a European ETF business in order to provide a two-way gateway into and out of China

9 About us China Post Global China Post Fund China Post Group Capital Securities Sumitomo Mitsui

10 Our aim China expertise European investors What product?

11 Options considered Passive Smart Beta Active

12 Options considered Smart Beta

13 Options considered Size Smart Beta Value Low Vol Multi Factor

14 Solution chosen Minimum Variance a concept based on Markowitz s Modern Portfolio Theory

15 Solution chosen x Meets a certain investor need to access China in a risk-reduced way Simple and clear rationale and methodology x A Min Var portfolio is the portfolio with the lowest overall volatility subject to defined constraints, as opposed to a portfolio of low volatility stocks

16 Implementation Listing Market access Settlement Distribution Index methodology

17 Benefits and lessons Market access Provide a solution to investors Provide a solution to investors 1

18 Disclaimer Market Access (the Company ) does not offer advice to individual investors. This document is issued by China Post Global (UK) Limited ("China Post Global") acting through its offices at 25 Hanover Square, London W1S 1JF and for the purposes of Directive 2004/39/EC has not been prepared in accordance with the legal and regulatory requirements to promote the independence of research. This document has been prepared for information purposes only. It shall not be construed as, and does not form part of an offer, nor invitation to offer, nor a solicitation or recommendation to enter into any transaction or an offer to sell or a solicitation to buy any security or other financial instrument. No representation, warranty or assurance of any kind, express or implied, is made as to the accuracy or completeness of the information contained herein and China Post Global and each of its affiliates disclaim all liability for any use you or any other party may make of the contents of this document. The contents of this document are subject to change without notice and China Post Global does not accept any obligation to any recipient to update or correct any such information. China Post Global (UK) Limited is an appointed representative of Mirabella Advisers LLP, which is authorised and regulated by the Financial Conduct Authority. The Company is regulated by the Commission de Surveillance du Secteur Financier in Luxembourg. Investors should read the Prospectus of the Company and the Key Investor Information Document of the Fund carefully before investing and inform themselves about the features of the Market Access ETFs (the ETFs ) and the Fund, the risks involved, potential legal and tax consequences, offering restrictions or exchange control requirements that may be encountered under their local country s laws and regulations. Shares of the ETFs are issued by the Company and are globally distributed by China Post Global. The ETFs are not and will not be offered or sold in the United States to or for the account of U.S. persons as defined by U.S. securities laws. This document is not for distribution in the U.S. or to U.S. persons. Each purchaser of ETF shares will be asked to certify that such person is not a U.S. person, is not receiving ETF shares in the U.S., and is not acquiring ETF shares for the benefit of a U.S. person. This document is directed at institutional investors only. It should not be distributed to or be relied on by retail clients in any circumstances. For the UK, institutional investors ( Institutional Investors ) are Professional Clients as defined by the FCA. Calls may be recorded. The STOXX China A 900 Minimum Variance Unconstrained AM (the "Index") is the intellectual property (including registered trademarks) of STOXX Limited, Zurich, Switzerland ( STOXX ), Deutsche Börse Group or their licensors, which is used under license. The Fund is neither sponsored nor promoted, distributed or in any other manner supported by STOXX, Deutsche Börse Group or their licensors, research partners or data providers and STOXX, Deutsche Börse Group and their licensors, research partners or data providers do not give any warranty, and exclude any liability (whether in negligence or otherwise) with respect thereto generally or specifically in relation to any errors, omissions or interruptions in the Index or its data. The contents of this document are indicative and are subject to change without notice. This document is intended for your sole use on the basis that before entering into this, and/or any related transaction, you will ensure that you fully understand the potential risks and return of this, and/or any related transaction and determine it is appropriate for you given your objectives, experience, financial and operational resources, and other relevant circumstances. You should consult with such advisers as you deem necessary to assist you in making these determinations. China Post Global (UK) Limited will not act and has not acted as your legal, tax, regulatory, accounting or investment adviser or owe any fiduciary duties to you in connection with this, and/or any related transaction and no reliance may be placed on China Post Global (UK) Limited for investment advice or recommendations of any sort. China Post Global (UK) Limited makes no representations or warranties with respect to the information and disclaims all liability for any use you or your advisers make of the contents of this document. However this shall not restrict, exclude or limit any duty or liability to any person under any applicable laws or regulations of any jurisdiction which may not lawfully be disclaimed. Market Access is regulated by the Commission de Surveillance du Secteur Financier in Luxembourg. Prospective investors should read the Prospectus of Market Access and the Key Investor Information Document ('KIID') for each sub-fund ('ETF') carefully before investing and inform themselves about the features of the ETFs, the risks involved, potential legal and tax consequences, offering restrictions or exchange control requirements that may be encountered under their local country s laws and regulations. Where the document refers to 'swaps' or 'index swaps', it is referring to Over The Counter ('OTC') financial instruments. You should be aware that OTC derivatives ('OTC Derivatives') can provide significant benefits but may also involve a variety of significant risks. All OTC Derivatives involve risks which include (inter-alia) the risk of adverse or unanticipated market, financial or political developments, risks relating to the counterparty, liquidity risk and other risks of a complex character. In the event that such risks arise, substantial costs and/or losses may be incurred and operational risks may arise in the event that appropriate internal systems and controls are not in place to manage such risks. Therefore you should also determine whether the OTC transaction is appropriate for you given your objectives, experience, financial and operational resources, and other relevant circumstances. China Post Global (UK) Limited is an appointed representative of Mirabella Advisers LLP, which is authorised and regulated by the Financial Conduct Authority. This document is not for distribution in the U.S. or to U.S. persons. Each purchaser of ETF shares will be asked to certify that such person is not a U.S. person, is not receiving ETF shares in the U.S., and is not acquiring ETF shares for the benefit of a U.S. person. China Post Global (UK) Limited China Post Global (UK) Limited

19 Jeffrey Sherman Deputy CIO Doubleline Capital

20 Doubleline Luxembourg UCITS A Case Study Jeffrey Sherman, Deputy CIO

21 Introduction to Doubleline Entering Europe; the problem statement Options considered Solution chosen and why Implementation anecdotes Benefits derived, lessons learnt

22 Nigel Hellewell COO Equitile Investments Ltd.

23 Investing In Resilience Equitile Investments Case Study ALFI London Conference May 2017 Equitile Investments Ltd is Authorised and Regulated by the Financial Conduct Authority.

24 An investment firm.. Equitile Resilience Fund Global equity large cap resilient stocks Actively managed Long only No leverage Fair fees Equitile Investments Resilient assets Resilient approach Resilient relationships..built on a simple principle 24

25 An efficient pooling structure Both the Master (Equitile Resilience Fund) and the Feeder (Equitile Resilience Feeder Fund) are based onshore in the UK, registered with and regulated by the Financial Conduct Authority (FCA) UK onshore Other overseas markets Investor Investor Feeder Fund Equitile Resilience Feeder Fund OEIC Investor Investor Feeder fund only invests in master Fund (99% invested*) Master Fund Equitile Resilience Fund ACS Investor Investor * 100% of investment risk is within the Master ACS fund. Remaining less than 1% in the Feeder OEIC will be maintained in cash 25

26 Fair fees in active management Management fees charged only up to a threshold AUM The Equitile Fee Model is designed to; Secure a stable management platform Align our interests with our clients Be fair through sharing economies of scale Incentivise performance Disincentivise excessive asset gathering How it works; Performance fees charged only above a threshold AUM Performance fees are not layered on top of management fees While AUM remain below 350m investors pay a simple 0.7% annual management fee A 10% performance fee is charged only on returns generated by AUM above 350m All units pay the same blend of management & performance fees..promotes responsible investing 26

27 Delivering core principles efficiently 27

28 Resilient funds - actively managed - with fair fees Equitile Investments Ltd is Authorised and Regulated by the Financial Conduct Authority.

29 Jérémie Vuillquez Senior Legal Counsel Invesco Ltd.

30 Live poll - Invesco case study 5- Which of the following instruments are eligible for a UCITS fund? o Contingent convertible debt o perpetual bonds o distressed debt o None of them o All of them

31 UCITS Innovation Invesco Problem Statement: Launch of new fixed income strategies with alternative instruments 31

32 UCITS Innovation Invesco Options considered: Use of the most appropriate vehicle considering the eligibility of the instruments and the distribution model (UCITS, SIF of Part II) 32

33 UCITS Innovation Invesco Solution chosen: Implement strategy as UCITS after detailed analysis of the eligibility of the instruments with engagement with the CSSF to understand the disclosure/transparency requirements. Implementation also required internal changes such as Risk tool. 33

34 UCITS Innovation Invesco Benefits: Positive engagement in advance with the CSSF; clear disclosure to investors; ability to use the UCITS structure (distribution structure and simple registration process) for innovative strategy 34

35 Ali Ziai Director Orbis Investment Management (Luxembourg) S.A.

36 Thank You

37 sponsors: media partners: