Volatility and financial turbulence is set to continue into 2012. Hedge funds have a real opportunity to prove their worth and begin the transition to major part of the financial services sector.
Mandatory clearing of OTC derivatives contracts by 2012 is having a mixed impact on hedge fund strategies. Main worries concern costs and the possible difficulty in maintaining viable strategies.
Constantly on the brink of crisis, the 17-nation eurozone is fast approaching the point where it will either continue or admit defeat and fade into history.
The computational requirements of Solvency II are driving the need for more computing power and data storage accessible on a scalable basis. Early adopters are leveraging cloud computing for their Solvency II implementation. Others are taking a more cautious approach, waiting for the industry to address key concerns such as security before they to embrace computing.
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Deutsche Bank believes more investors will opt for a managed account platform solution, looking for liquidity and transparency as well as better operational risk management control.
Funds of hedge funds are finding innovative ways to produce alpha and justify their fess. Some are turning to bespoke solutions, unconventional hedge fund strategies or different structures.
Man Group expects more pension fund administrators as well as institutional investors to favour infrastructure managed accounts in future. Asian and US investment is also expected to grow.
Amundi Alternative Investment has ambitious plans for its managed account platform as the European Union’s alternative investment fund managers (AIFM) directive drives change in the sector.
In response to industry fears of a collateral crunch, regulators have revised the proposed rules on margining for uncleared over-the-counter (OTC) derivatives.You can find out more by downloading this white paper here.