Operational risk is defined as the risk of losses stemming from inadequate or failed internal processes, people, and systems, or from external events.[1] This also includes legal risk, which is prevalent in document intensive asset classes such as private debt. While studies have shown that operational risk accounts for 50% of failures[2], such failures are likely to be even higher for private debt, as it has the highest risk across private fund types and requires careful management to mitigate exposure.
The Securities Industry and Financial Markets Association (SIFMA), the Investment Company Institute (ICI), and The Depository Trust & Clearing Corporation (DTCC) last year published a report targeting the first half of 2024 to shorten the US securities settlement cycle from trade date plus 2 days (T+2) to trade date plus one day (T+1).
For emerging managers – any firm newly launching into the asset management market – choosing partners is a crucial exercise, and that includes the fund domicile. Elliot Refson, head of funds at Jersey Finance, expands on the issue and introduces Funds Europe’s emerging managers survey.
The Irish Limited Partnership rules increase Ireland’s attractiveness as a domicile for private assets and INDOS Financial (Ireland) Depositary Limited has picked up its first client.
Designed as a payment tool, cryptocurrencies have attracted the interest of asset managers as the promise of returns is so high.
Euroclear, MFEX and Greenomy are addressing sustainable finance challenges with innovative, scalable solutions.
An article for professional investors only by Kavitha Ramachandran, Head of Business Development & Client management (Continental Europe), Maitland.
Amid growing demand from socially conscious investors, asset managers have worked tirelessly over the past decade to create ESG investment vehicles. While the pandemic heightened mainstream interest in ESG, the trend is projected to continue its acceleration as it has become widely recognised as a key value driver.
Asset managers and fund boards grapple with the impact of climate risks on investments in their funds. However, things move quickly. Alongside awareness of biodiversity loss and the risk it poses, nature is another important risk that must also be considered.
The industry accepts the need for more rigour to ESG fund reporting. But the work will be pointless if investors don’t understand the end result. Nicholas Pratt reports.
