WAISC - September 2013

Transcription

1 WAISC - September 2013

2 Topics About AIMA & AIMA Canada Defining the industry: size, strategies & investor composition Trending: retailisation and start-ups Preferences toward alternative investments: investors & consultants 2

3 AIMA The Alternative Investment Management Association Celebrating its 23 rd year, AIMA represents the global alternative investment community, providing a centre of knowledge for professional investment practitioners Membership spans over 40 countries on five continents. Corporate members enable the Association to create global tools for the benefit of members, institutional investors and regulators AIMA addresses key issues affecting the industry around the world and provides a voice for the alternatives industry 3

4 AIMA Canada Established in 2003 Over 100 corporate members across Canada, including: Hedge fund and fund of hedge fund managers Lawyers, accountants, prime brokers, administrators Institutional investors Ten committees, including Executive Committee, representing more than 250 active individual members Regular dialogue and outreach with Canadian regulators, media and other participants in the hedge fund community 4

5 AIMA Canada Organizational Structure Executive Committee Gary Ostoich, Chair Andrew Doman, Deputy Chair Chris Pitts, Treasurer M. Corey Goldman: Michael Burns, Legal Kyle Brock: Paul Patterson, Secretary GM / COO Administration assistant Spartan Fund Management Kinersis Renewables Group PricewaterhouseCoopers LLP McMillan LLP Integrated Asset Management Group Administration James Burron Raphael Garcia Chief Operating Officer Associate 5

6 AIMA Canada Committees and Co-Chairs Subject-Matter Committees: Education & Research Neil Simons, Northwater; Adrian Hussey, UTAM Events Claire Van Wyk, RBC GAM; Laura Reid, KPMG Legal & Finance Ian Pember, Hillsdale; Dawn Scott, Torys LLP Managed Futures David Rudd, Sigma Analysis & Mgmt.; Paul Patterson, IAM Group Manager-Only John Maynard, West Face Capital, Danielle Skipp, SW8 Asset Mgmt. Sales Practices Craig Machel, Macquarie; Wilson Tow, Scotiabank Regional Committees: Alberta Leslie Vickers, Grafton Asset Mgmt; Basil D Souza, Auspice Capital British Columbia Roland Wood, Fiera Capital Corp.; Jonathan Lotz, Heenan Blaikie Québec Claude Perron, Crystalline Mgmt.; Stéphane Amara, Deutsche Bank 6

7 Defining the industry - >$30 billion AUM About half (58%) of Canadian hedge fund sponsors manage under $100 million. Top 10 funds control 50% of Canadian hedge AUM. 100% 90% 80% 70% 6% 5% 9% 22% 49% Over $ 1 billion 60% $500 mil - $1 bil 50% 40% 18% 13% $250-$500 mil $100-$250 mil $50-$100 mil 30% 13% 15% $25-$50 mil $0-$25 mil 20% 10% 0% 12% 27% 7% 3% 2% # of fund managers AUM of fund managers 7 Source: AIMA Canada, August 2013

8 Canada vis-à-vis the world Each bracket is fairly similar comparing Canada to the global industry 100% 6% 90% 5% 17% 80% 18% 8% 70% 9% 60% 22% 15% Over $ 1 billion 50% $500 mil - $1 bil $250-$500 mil 40% 30% 20% 58% 51% $100-$250 mil <$100 million 10% 0% Canadian managers All managers 8 Source: AIMA Canada (Aug 2013), HFR Inc. (Q2 2011)

9 AIMA Canada members AIMA Canada fund manager members are of all sizes and approximates the industry. Over $ 1 billion $500 mil - $1 bil Canada hedge AIMA Canada members $250-$500 mil $100-$250 mil $50-$100 mil $25-$50 mil $0-$25 mil 0% 5% 10% 15% 20% 25% 30% Source: AIMA Canada, August

10 Strategies 10 Largest by number of funds still long-short equity Overall diversified with about 10% of AUM in activist/opportunistic, fixed income/credit arbitrage, event-driven, market neutral, multistrategy Geographic foci: Canada, North America, global Sector foci: energy, healthcare, financials, REITs Instruments traded: equities, bonds, credit and other derivatives, converts, options, futures, structured products (ABCP) Newer funds from all types of strategies

11 Investors Two-tiered: Top 10 fund managers (50% of AUM): estimated 50% from institutional investors Other 125 fund managers: estimated 25% from institutions Similarly for offshore metrics. 11

12 Trending: Retailisation Reports of hedge funds being only for institutions are inaccurate New legislation: NI Proposed modernisation of investment fund product regulation Education efforts: over the last 10 years and going forward Comparison to mutual funds and GIC refugees of the 1990s 12

13 Trending: Start-ups Estimate one new fund manager each month across Canada Sources of talent: Bank prop and flow desks Spin-outs of other hedge funds Spin-outs of incubators Spin-outs of mutual funds IAs starting own fund Diverse trading strategies breadth and depth to the market 13

14 Investor + Consultant Survey Respondents: 55% investors, 45% consultants Diversified geographic and practice foci for consultants Diversified type and AUM of investors. 5 alternatives discussed: real estate, commodities, hedge funds, private equity and infrastructure 14

15 Investor + Consultant Survey Both groups generally positive about all 5 areas and well-versed in all areas with greatest knowledge in hedge funds and least in commodities Alternatives not already active in were being researched for possible inclusion in short to longer-term 93% of consultants saw somewhat to much higher activity/recommendations in alternatives in next 2-3 years Both groups want live and on-line sessions for all stakeholders and decision-makers. Both basic and advanced topics. Interest in taking CAIA also. 15

16 AIMA Canada Contact us Connect with the alternative investment management industry worldwide by joining AIMA Applications forms are available at or by contacting: James Burron, Chief Operating Officer AIMA Canada Phone: Cell: Download the AIMA Canada Handbook Subscribe to the AIMA Canada newsletter 16