Amid growing scrutiny from government and industry authorities as well as heightened competition in investment markets across the globe, asset services have now been providing the necessary support to asset management companies’ day-to-day operations.
The results of the outsourcing practice do not always satisfy the clients, however, and often, this “failure” of partnership can be attributed to the wrong expectations on the side of the fund managers. This article discusses two of these misguided notions when enlisting asset servicing firms:
Asset servicing is going to be a bargain. Many asset management firms are at a not-so-ideal business position when they do decide to tap outsourcing – and that is alright. However, some of them will tend to look at asset servicing specifically as a cure-all, and a means to make massive spending cuts on business procedures. And then they become surprised when they end up making a significant expense for the contract. In truth, asset servicing is in itself another form of investment. It is not a bargain in the sense of a buy-one-take-one promotion, but a bargain in the sense that a firm is able to save valuable time and resources for recruitment and training, purchase and maintenance of state-of-the-art solutions, and enlistment of actual experts in the field. In a way, this means gaining new talent and technology, but not with the usual amount of costs involved.
Only the asset servicing firm needs to adjust. A successful partnership will very much depend on the willingness of both parties to adjust. Inasmuch as a good outsourcing partner would like to avoid business interruption, asset servicing will result in some degree of change. Roles have to be handed over, after all, which might also result in some friction between the in-house staff and the third party firm. The latter will also inevitably introduce new methods for accomplishing the same goals, which might contradict commonly held views within the client’s organization. For instance, where living, breathing humans used to handle some tasks, many asset servicing firms would be keen on automation, believing that the delivery of many of these functions could be designed in a way that promotes accuracy, precision, and speed.
To avoid disappointment when tapping asset services, fund managers need to put forward their particular expectations at the negotiating table, before any agreements are signed. Contracts can always be reformulated to address each concern, to ensure the satisfaction of all parties in the end.
Showing posts with label Finance. Show all posts
Showing posts with label Finance. Show all posts
Monday, April 10, 2017
Monday, February 20, 2017
How will the alternative investments domain fare under Trump?
Reduced taxes, a relaxation of regulations, and new trade policies. These were some of Trump’s commitments during the election season. Not surprisingly, Wall Street is excited, and those in the alternative investments sector, apparently even more so.
The list of alternative assets includes private equity, venture capital, hedge funds, and real assets such as oil and gas, gold, precious metals, antiques, and art. And a Trump presidency is set to affect all of these sectors.
Trump’s immigration policy is likely to result in a decreased number of labor workers, which in turn will impact on the operations of manufacturing, automative, food and beverage, and real estate. In truth, even as his campaign puts so much of the blame on immigrants for “stealing the jobs of locals,” immigrants take on a sizeable amount of the undesirable and unstable work for much lower pay.
With this development, costs for labor might go up, leading to higher prices of commodities and properties. It is yet to be seen whether this will be net positive or negative for the investment and securities business: On the one hand, it will be the opposite of the housing bubble that led to mortgage crisis of 2007 to 2019, where the decline in property prices resulted in the devaluation of real estate-based investments. On the other hand, higher prices might also simply turn the market away in favor of countries with better-priced properties.
Moreover, Trump has spoken about plans to reduce corporate taxes and bring back home the $2.5 trillion worth of cash from abroad. In addition, because he is from the world of business, he has been appointing businessmen to government posts, most notably former Goldman Sachs top exec and hedge fund manager Steven Mnuchin. With people from the industry around him, Trump is more likely to respond to the growing concern of fund management professionals towards easing up on current regulations covering asset management. More relaxed regulations will most likely draw more investors and expand the ways they can do business. At the same time, the situation might bring us back to the same problems that we faced before the financial crisis, which legislations such as the Dodd-Frank Act hoped to address.
In summary, nothing is certain for the alternative investments industry under Trump. But alternative asset managers will definitely benefit from consulting with today’s breed of asset servicing firms to boost their operational efficiency and strengthen their organization amid these unpredictable times.
The list of alternative assets includes private equity, venture capital, hedge funds, and real assets such as oil and gas, gold, precious metals, antiques, and art. And a Trump presidency is set to affect all of these sectors.
Trump’s immigration policy is likely to result in a decreased number of labor workers, which in turn will impact on the operations of manufacturing, automative, food and beverage, and real estate. In truth, even as his campaign puts so much of the blame on immigrants for “stealing the jobs of locals,” immigrants take on a sizeable amount of the undesirable and unstable work for much lower pay.
With this development, costs for labor might go up, leading to higher prices of commodities and properties. It is yet to be seen whether this will be net positive or negative for the investment and securities business: On the one hand, it will be the opposite of the housing bubble that led to mortgage crisis of 2007 to 2019, where the decline in property prices resulted in the devaluation of real estate-based investments. On the other hand, higher prices might also simply turn the market away in favor of countries with better-priced properties.
Moreover, Trump has spoken about plans to reduce corporate taxes and bring back home the $2.5 trillion worth of cash from abroad. In addition, because he is from the world of business, he has been appointing businessmen to government posts, most notably former Goldman Sachs top exec and hedge fund manager Steven Mnuchin. With people from the industry around him, Trump is more likely to respond to the growing concern of fund management professionals towards easing up on current regulations covering asset management. More relaxed regulations will most likely draw more investors and expand the ways they can do business. At the same time, the situation might bring us back to the same problems that we faced before the financial crisis, which legislations such as the Dodd-Frank Act hoped to address.
In summary, nothing is certain for the alternative investments industry under Trump. But alternative asset managers will definitely benefit from consulting with today’s breed of asset servicing firms to boost their operational efficiency and strengthen their organization amid these unpredictable times.
Wednesday, January 04, 2017
Hedge Funds and Asset Services 101: 3 important terms in an outsourcing agreement
Among hedge funds, the enlistment of asset services has become a widely accepted means of dealing with the demands of an increasingly competitive industry as well as tightened regulations. Picking the right outsourcing partner is important, but moreso the service agreement: It should be clear and precise, to ensure a smooth working relationship between the service provider and the client.
Below, we list down the basic items that should be in the terms of agreement with your asset servicing firm.
Communication. It should be clear to both parties who will represent the asset servicing firm and the service provider when the partnership actually begins. Terms should also cover the frequency of correspondence (Is there going to be daily, weekly, or monthly checks?); the venue for such correspondence (Does the client prefer e-mail, phone call, or face-to-face meetings?); and the range of time needed for the outsourcing partner to offer a response to queries.
Expected work outputs. Metrics should be set regarding the volume of work that the client expects. Will the service be measured in terms of man-hours rendered? Or are there particular, tangible items to be delivered? The clearer and more specific these terms are, the better; there will be no confusion when the service provider performs a task outside of what is stipulated in the contract.
Quality control. How will the asset servicing firm ensure the quality of outputs? Who are the persons in charge of quality assessment? How will these quality assessment processes be conducted? Will a third party be involved? What standards will be observed when it comes to the audit of the service provider’s outputs? What measures will be implemented should the hedge fund management firm be dissatisfied? Are technologies available to improve the way these tasks are accomplished?
Payment terms. Asset services are a hit in the industry because it supposedly allows fund management firms to save on operational costs. Making such savings can be facilitated by payment terms that are flexible and attuned to the goals of the fund managers. The volume of work, the tools to be procured or implemented, and the manpower to be deployed should all be based on the firm’s budget, but on top of this, terms for quarterly or semi-annual installment payments can be a huge relief, financially speaking.
With the right outsourcing partner, all these terms can be easily negotiated, to lean towards the needs of the fund management firm.
Below, we list down the basic items that should be in the terms of agreement with your asset servicing firm.
Communication. It should be clear to both parties who will represent the asset servicing firm and the service provider when the partnership actually begins. Terms should also cover the frequency of correspondence (Is there going to be daily, weekly, or monthly checks?); the venue for such correspondence (Does the client prefer e-mail, phone call, or face-to-face meetings?); and the range of time needed for the outsourcing partner to offer a response to queries.
Expected work outputs. Metrics should be set regarding the volume of work that the client expects. Will the service be measured in terms of man-hours rendered? Or are there particular, tangible items to be delivered? The clearer and more specific these terms are, the better; there will be no confusion when the service provider performs a task outside of what is stipulated in the contract.
Quality control. How will the asset servicing firm ensure the quality of outputs? Who are the persons in charge of quality assessment? How will these quality assessment processes be conducted? Will a third party be involved? What standards will be observed when it comes to the audit of the service provider’s outputs? What measures will be implemented should the hedge fund management firm be dissatisfied? Are technologies available to improve the way these tasks are accomplished?
Payment terms. Asset services are a hit in the industry because it supposedly allows fund management firms to save on operational costs. Making such savings can be facilitated by payment terms that are flexible and attuned to the goals of the fund managers. The volume of work, the tools to be procured or implemented, and the manpower to be deployed should all be based on the firm’s budget, but on top of this, terms for quarterly or semi-annual installment payments can be a huge relief, financially speaking.
With the right outsourcing partner, all these terms can be easily negotiated, to lean towards the needs of the fund management firm.
Monday, October 31, 2016
Promoting operational efficiency in hedge funds through asset servicing solutions
Operational efficiency is a goal for any business organization. For such a competitive industry like the hedge funds, this goal becomes even more important: To survive, a company needs to be wise at dispensing its resources, and making sure that each expense item truly adds value to the operations.
Towards efficiency and to cope with the changing demands of an ever-growing domain, many a firm has invested in new technologies, new services, new hires only to find that these do not, in fact, bring in much benefit. The result is a much more cautious pool of portfolio managers whose hesitation in adopting innovations into their front, middle, and back offices prevent them from making a step forward, in terms of widening their product lines, grabbing new trading opportunities, or even conquering new markets.
Ultimately, they will be outperformed by those who are willing to study the risks and implement the right infrastructure accordingly. For one, it must be noted that the competitiveness of the asset servicing industry has spawned many outsourcing providers that are eager to please, and ready to cater to requirements beyond the traditional technology or back office support.
These days, the most sophisticated asset servicing partners have the capability and the solutions to handle a wide range of investment management operations. They have the staff and platform for data warehousing and management, daily trade and bank reconciliation, accounting, tax reporting, and compliance management, allowing hedge funds firms to focus on their front office and growing the assets under their management.
With this development, the companies that enlist asset servicing solutions do so much more than just reduce their overhead costs. More importantly, they are able to streamline their procedures, and reallocate resources that were previously deployed to parts of a system with redundancies. They learn to prioritize and master the core components of their operations, and delegate the rest of the functions to a third-party entity with specialized services and the latest tools for said functions. Their talent are able to focus on particular, strategic tasks, and develop their skills to become miles ahead of the competition. The enlistment of asset servicing might even spur an overhaul of a firm’s entire business model.
In the end, efficiency through asset servicing will mean not only money savings for hedge funds, but a leaner but more results-oriented organization that can truly take on the various challenges of asset management in this era.
Towards efficiency and to cope with the changing demands of an ever-growing domain, many a firm has invested in new technologies, new services, new hires only to find that these do not, in fact, bring in much benefit. The result is a much more cautious pool of portfolio managers whose hesitation in adopting innovations into their front, middle, and back offices prevent them from making a step forward, in terms of widening their product lines, grabbing new trading opportunities, or even conquering new markets.
Ultimately, they will be outperformed by those who are willing to study the risks and implement the right infrastructure accordingly. For one, it must be noted that the competitiveness of the asset servicing industry has spawned many outsourcing providers that are eager to please, and ready to cater to requirements beyond the traditional technology or back office support.
These days, the most sophisticated asset servicing partners have the capability and the solutions to handle a wide range of investment management operations. They have the staff and platform for data warehousing and management, daily trade and bank reconciliation, accounting, tax reporting, and compliance management, allowing hedge funds firms to focus on their front office and growing the assets under their management.
With this development, the companies that enlist asset servicing solutions do so much more than just reduce their overhead costs. More importantly, they are able to streamline their procedures, and reallocate resources that were previously deployed to parts of a system with redundancies. They learn to prioritize and master the core components of their operations, and delegate the rest of the functions to a third-party entity with specialized services and the latest tools for said functions. Their talent are able to focus on particular, strategic tasks, and develop their skills to become miles ahead of the competition. The enlistment of asset servicing might even spur an overhaul of a firm’s entire business model.
In the end, efficiency through asset servicing will mean not only money savings for hedge funds, but a leaner but more results-oriented organization that can truly take on the various challenges of asset management in this era.
Monday, July 11, 2016
What hedge funds need to look for in their back office solutions
Transparency is, without a doubt, very important in the hedge fund industry, as it is important that fund managers provide investors with precise details on fees, performance, and other relevant pieces of information. This should all be done while remaining compliant with operational policies and procedures, and that all adds up to a lot of pressure on hedge funds, pressure that can be eased with the right choice of back office solutions.
Making the right decision when it comes to back office administration is crucial to the performance of hedge funds. It could lead to more efficient operations, both in terms of cost and on a broader level. And with improving efficiency a paramount goal for many hedge funds, they have tended to outsource back office duties to asset services firms. Doing so allows hedge funds to focus more on activities that could generate more revenue going forward.
When choosing a back office solution provider, it is important that hedge funds opt for a company that offers a lot of variety in the products and services they carry. These should be on the bleeding edge of technology, especially those solutions that leverage the cloud. Cloud-based solutions are becoming more and more common in different industries, and are slowly becoming de rigueur, must-have features for any company shopping around for the right back office provider. Among other reasons, this is because of these solutions’ flexibility, the ability to securely and conveniently access data, and the ease in which said data can be recovered in case of unforeseen events.
Experience is another key area of consideration when looking for the right back office solutions provider. There are many companies that offer these solutions, but hedge funds should prioritize those that have years of proven experience in what they do. And while years of experience is almost always worth something, that experience should be backed up by proven results, and a reputation for integrity.
Hedge fund managers need to tap outsourcing providers that have a solid track record as an asset services firm, one with a top-of-the-line cloud-based platform, as well as a team of in-house experts that can cater to a wide range of hedge fund needs. They need to find a partner that prides itself on transparency, accuracy, and timeliness when delivering essential reports. A mix of expertise, core values, and a solid suite of high-end back office solutions will inspire confidence among client investors, especially amid volatile market conditions.
Making the right decision when it comes to back office administration is crucial to the performance of hedge funds. It could lead to more efficient operations, both in terms of cost and on a broader level. And with improving efficiency a paramount goal for many hedge funds, they have tended to outsource back office duties to asset services firms. Doing so allows hedge funds to focus more on activities that could generate more revenue going forward.
When choosing a back office solution provider, it is important that hedge funds opt for a company that offers a lot of variety in the products and services they carry. These should be on the bleeding edge of technology, especially those solutions that leverage the cloud. Cloud-based solutions are becoming more and more common in different industries, and are slowly becoming de rigueur, must-have features for any company shopping around for the right back office provider. Among other reasons, this is because of these solutions’ flexibility, the ability to securely and conveniently access data, and the ease in which said data can be recovered in case of unforeseen events.
Experience is another key area of consideration when looking for the right back office solutions provider. There are many companies that offer these solutions, but hedge funds should prioritize those that have years of proven experience in what they do. And while years of experience is almost always worth something, that experience should be backed up by proven results, and a reputation for integrity.
Hedge fund managers need to tap outsourcing providers that have a solid track record as an asset services firm, one with a top-of-the-line cloud-based platform, as well as a team of in-house experts that can cater to a wide range of hedge fund needs. They need to find a partner that prides itself on transparency, accuracy, and timeliness when delivering essential reports. A mix of expertise, core values, and a solid suite of high-end back office solutions will inspire confidence among client investors, especially amid volatile market conditions.
Monday, May 23, 2016
Maximizing growth opportunities for hedge funds
Over the years, hedge funds have grown in popularity and have piqued the interest of those who are looking to meet their financial goals and maximize their capital gains.
Now one of the largest types of alternative investments, hedge funds raked in capital amounting to $2.9 trillion in the fourth quarter of 2015. According to Hedge Fund Research’s report released earlier this year, this is equivalent to a rise of up to $22.8 billion compared to the previous quarter. It is also quite noteworthy that hedge fund assets increased while other forms of investments declined.
The reliable performance of these alternative assets in the industry led financial experts to dub hedge funds as critical and promising tools in the global economy. In fact, professional services firm PwC said in its report that hedge funds will rise to even greater heights in the next five years. It also predicted that hedge fund assets will double and reach up to $4.6 trillion to $5 trillion in 2020.
Along with the projected growth of the hedge fund industry, several opportunities and trends are also expected to arise. Healthy competition will continue to challenge fund managers to innovate and strategize. They will also have to revolutionize their business models in order to keep up with the dynamics of the financial market.
A major growth opportunity for asset management firms is the diversification of revenues. Experts say that those with diversified products are more likely to survive the volatile financial market. These companies also prove to be more resilient and are able to continue managing their funds even when a once profitable product suffers from a downturn.
In hedge funds, diversification of revenues includes changes in capital sources, in markets they invest in, and in services they provide. Fund managers expect that public sector pension funds and sovereignty wealth funds will play an important role as primary capital sources in the next five years. The increasing accessibility within the global market will also permit them to invest in and focus on a different group of countries, as some see more opportunities in emerging and frontier markets. Moreover, the trend of having multi-strategy offerings with increasing operational complexity will also continue. Clients will more likely go for managers who offer customized solutions to address their needs.
To seize and maximize these growth opportunities, it would be wise to choose asset servicing partners who have extensive industry experience. Their expert understanding of the constantly evolving conditions of the financial market, as well as the roster of services they offer, are also important factors that should be looked into.
Now one of the largest types of alternative investments, hedge funds raked in capital amounting to $2.9 trillion in the fourth quarter of 2015. According to Hedge Fund Research’s report released earlier this year, this is equivalent to a rise of up to $22.8 billion compared to the previous quarter. It is also quite noteworthy that hedge fund assets increased while other forms of investments declined.
The reliable performance of these alternative assets in the industry led financial experts to dub hedge funds as critical and promising tools in the global economy. In fact, professional services firm PwC said in its report that hedge funds will rise to even greater heights in the next five years. It also predicted that hedge fund assets will double and reach up to $4.6 trillion to $5 trillion in 2020.
Along with the projected growth of the hedge fund industry, several opportunities and trends are also expected to arise. Healthy competition will continue to challenge fund managers to innovate and strategize. They will also have to revolutionize their business models in order to keep up with the dynamics of the financial market.
A major growth opportunity for asset management firms is the diversification of revenues. Experts say that those with diversified products are more likely to survive the volatile financial market. These companies also prove to be more resilient and are able to continue managing their funds even when a once profitable product suffers from a downturn.
In hedge funds, diversification of revenues includes changes in capital sources, in markets they invest in, and in services they provide. Fund managers expect that public sector pension funds and sovereignty wealth funds will play an important role as primary capital sources in the next five years. The increasing accessibility within the global market will also permit them to invest in and focus on a different group of countries, as some see more opportunities in emerging and frontier markets. Moreover, the trend of having multi-strategy offerings with increasing operational complexity will also continue. Clients will more likely go for managers who offer customized solutions to address their needs.
To seize and maximize these growth opportunities, it would be wise to choose asset servicing partners who have extensive industry experience. Their expert understanding of the constantly evolving conditions of the financial market, as well as the roster of services they offer, are also important factors that should be looked into.
Monday, April 11, 2016
Why foundations need back office support
Passionate about an advocacy that they feel is often overlooked by the public sector, many private individuals or groups go on to establish foundations. They create its brand and identity, conceptualize programs and activities raise funds to support its operations, and in the process build its network and leadership.
Behind all these efforts are back office functions that obviously make huge impacts on the success of their actions, while not directly related to their cause. Roles such as accounting, tax reporting, human resource management, procurement or rentals of office space and equipment are crucial in the day-to-day operations of foundations, and they require a considerable investment of resources.
Tax reporting and accounting, for instance, are components needed for producing reports to be submitted to the regulatory bodies, and without these they would not be allowed to operate. Moreover, meticulous accounting is important in the interest of transparency: partner organizations, the board of directors, donors, and supporters would all be keen on learning how funds are spent – hopefully towards the advocacy.
It would be a great disservice to the well-meaning individuals and organizations who parted with their hard-earned money if a foundation’s finances would not be well-kept, because of operational inefficiency. And most of the time, efficiency gets thrown out the window when foundations are preoccupied with what they believe to be their organization’s raison d'être: promoting their cause. For example, it would be hard for them to be diligent about the collection of receipts for transactions made, performing rigorous bidding for products or services that need to be purchased, or conducting a more thorough selection process for job applicants, when they are more worried about generating funds, dealing with the grassroots, or raising awareness campaigns.
The reality is that most foundations run on a lean budget, and would most likely prefer to work the front office and have little time for handling the tedious back office roles. While definitely committed to the cause, they are also often understaffed, which forces them to neglect the nitty-gritty of operations.
These days, thankfully foundations can tap the assistance of a third party to provide back office solutions. Such service providers already have the expertise as well as the tools that allow them to efficiently take on tasks like bookkeeping, preparation of donor reports, and staffing. With their help, foundations can then be more focused on the strategic aspect of running an organization for a cause.
Behind all these efforts are back office functions that obviously make huge impacts on the success of their actions, while not directly related to their cause. Roles such as accounting, tax reporting, human resource management, procurement or rentals of office space and equipment are crucial in the day-to-day operations of foundations, and they require a considerable investment of resources.
Tax reporting and accounting, for instance, are components needed for producing reports to be submitted to the regulatory bodies, and without these they would not be allowed to operate. Moreover, meticulous accounting is important in the interest of transparency: partner organizations, the board of directors, donors, and supporters would all be keen on learning how funds are spent – hopefully towards the advocacy.
It would be a great disservice to the well-meaning individuals and organizations who parted with their hard-earned money if a foundation’s finances would not be well-kept, because of operational inefficiency. And most of the time, efficiency gets thrown out the window when foundations are preoccupied with what they believe to be their organization’s raison d'être: promoting their cause. For example, it would be hard for them to be diligent about the collection of receipts for transactions made, performing rigorous bidding for products or services that need to be purchased, or conducting a more thorough selection process for job applicants, when they are more worried about generating funds, dealing with the grassroots, or raising awareness campaigns.
The reality is that most foundations run on a lean budget, and would most likely prefer to work the front office and have little time for handling the tedious back office roles. While definitely committed to the cause, they are also often understaffed, which forces them to neglect the nitty-gritty of operations.
These days, thankfully foundations can tap the assistance of a third party to provide back office solutions. Such service providers already have the expertise as well as the tools that allow them to efficiently take on tasks like bookkeeping, preparation of donor reports, and staffing. With their help, foundations can then be more focused on the strategic aspect of running an organization for a cause.
Tuesday, February 09, 2016
The Changing Landscape for Business Development Companies
Today, the entire financial industry is witnessing how business development companies (BDCs) are taking a greater share of assets under management. BDCs are investment companies that invest in private small and medium-sized businesses, with the goal of gaining a large share, and wielding significant management power.
Under the Internal Revenue Code, BDCs are classified as Regulated Investment Companies, which entitle them to special tax privileges. As long as they meet standards regarding income, asset diversification, and distribution, BDCs only need to pay minimal tax. Moreover, they are able to avail of high-risk loans with relatively less regulatory demands compared to banks.
But the landscape is changing. BDCs are now drawing far greater attention, which have since been resulting in growing efforts to regulate the sector, on top of the current policies that require them to file reports on a quarterly and yearly basis, and submit proxy statements to the SEC.
Some groups are complaining about the sizeable fees companies need to pay the BDCs and its top executives, in exchange for their guidance in boosting business growth.
Others are putting more focus on the risk inherent in the BDC framework: BDCs assume that the companies they invest in will grow phenomenally, yielding great returns for the shareholders. However, many other factors will affect the performance of an enterprise, and it is also possible that the investment will fail to generate a return. Massive investment can also mean massive losses.
At the same time, over at Congress, there are efforts to lift the limit set on the amount BDCs can borrow. Right now, BDCs can borrow based on the equity they have. Under the proposed bill, they can borrow under a 2:1 ratio: BDCs can get funds double the amount of what they possess.
Aside from generating more attention, this new bill will push many BDCs to expend more effort in order to double their target income, and be able to pay their loans and also distribute capital gains to their shareholder, and escape taxation.
To address these new considerations that mark the changing terrain they operate in, many business development companies are now enlisting the services of fund administrators. These administrators can implement cloud-based systems for processing of subscriptions, transfer and exchange, and recordkeeping. Fund administrators can also take care of such tedious administrative roles as drafting proposals and agreements and preparing reports, while the BDCs look for bigger opportunities for growth.
Under the Internal Revenue Code, BDCs are classified as Regulated Investment Companies, which entitle them to special tax privileges. As long as they meet standards regarding income, asset diversification, and distribution, BDCs only need to pay minimal tax. Moreover, they are able to avail of high-risk loans with relatively less regulatory demands compared to banks.
But the landscape is changing. BDCs are now drawing far greater attention, which have since been resulting in growing efforts to regulate the sector, on top of the current policies that require them to file reports on a quarterly and yearly basis, and submit proxy statements to the SEC.
Some groups are complaining about the sizeable fees companies need to pay the BDCs and its top executives, in exchange for their guidance in boosting business growth.
Others are putting more focus on the risk inherent in the BDC framework: BDCs assume that the companies they invest in will grow phenomenally, yielding great returns for the shareholders. However, many other factors will affect the performance of an enterprise, and it is also possible that the investment will fail to generate a return. Massive investment can also mean massive losses.
At the same time, over at Congress, there are efforts to lift the limit set on the amount BDCs can borrow. Right now, BDCs can borrow based on the equity they have. Under the proposed bill, they can borrow under a 2:1 ratio: BDCs can get funds double the amount of what they possess.
Aside from generating more attention, this new bill will push many BDCs to expend more effort in order to double their target income, and be able to pay their loans and also distribute capital gains to their shareholder, and escape taxation.
To address these new considerations that mark the changing terrain they operate in, many business development companies are now enlisting the services of fund administrators. These administrators can implement cloud-based systems for processing of subscriptions, transfer and exchange, and recordkeeping. Fund administrators can also take care of such tedious administrative roles as drafting proposals and agreements and preparing reports, while the BDCs look for bigger opportunities for growth.
Monday, November 09, 2015
Improving Business Value Through an Efficient Portfolio Management System
Making the next move in the global financial market entails dealing with a combination of fate and quantitative information. While the first one is unpredictable, having a solid reference of useful information about assets, liabilities and risks is already a choice. This is why an efficient portfolio management system has already become an essential part of the business.
Kellogg School of Management, in collaboration with DiamondCluster International, explained that trade press and industry analysts consider IT portfolio management (ITPM) as an integral part of the financial industry. Out of 130 senior IT executives who participated in their survey, 65 per cent believe that incorporating technology in managing of investments could yield significant value. But the question is how?
Visibility is so crucial in the investment world. When you have a good grasp of the past project metrics, it becomes a lot easier to forecast future factors like resource utilization. By presenting a consolidated view of assets, transactions, changes and cash flows, portfolio management system significantly help in better decision making.
Aside from presenting a wide range of useful information, an efficient financial reporting platform also offers tools that could help key players calculate the pros and cons of a project—considering all the crucial aspects, such as financial, governance and resource utilization. The sooner one identifies which projects are not performing well, the easier it is to mitigate risks and maximize the resources.
With these essential benefits, many firms prefer to partner with third-party providers to deploy a solution that really works. Not only does it save them from complex and time-consuming deployment burdens, but it also lessens their operational costs. For example, since cloud-computing solutions are basically pay as you go, there’s no need for capital expenditure (Cap-Ex) at all, said IT and social media authority SalesForce.
“The motives that drive different institutions to cloud differ,” said head of e-channels, Global Transaction Banking at RBS Alastair Brown in an interview with Business Cloud News. He adds, “Tier One institutions are very much focused on reducing costs, getting to market faster, whereas the Tier Two and Three banks want to roll out services like trade finance that they wouldn’t be able to do alone.”
To know more on how a portfolio management system could streamline your business operations and even simplify your job as a fund manager, contact a trusted asset services firm recognized for providing exceptional client care and innovative technology solutions.
Kellogg School of Management, in collaboration with DiamondCluster International, explained that trade press and industry analysts consider IT portfolio management (ITPM) as an integral part of the financial industry. Out of 130 senior IT executives who participated in their survey, 65 per cent believe that incorporating technology in managing of investments could yield significant value. But the question is how?
Visibility is so crucial in the investment world. When you have a good grasp of the past project metrics, it becomes a lot easier to forecast future factors like resource utilization. By presenting a consolidated view of assets, transactions, changes and cash flows, portfolio management system significantly help in better decision making.
Aside from presenting a wide range of useful information, an efficient financial reporting platform also offers tools that could help key players calculate the pros and cons of a project—considering all the crucial aspects, such as financial, governance and resource utilization. The sooner one identifies which projects are not performing well, the easier it is to mitigate risks and maximize the resources.
With these essential benefits, many firms prefer to partner with third-party providers to deploy a solution that really works. Not only does it save them from complex and time-consuming deployment burdens, but it also lessens their operational costs. For example, since cloud-computing solutions are basically pay as you go, there’s no need for capital expenditure (Cap-Ex) at all, said IT and social media authority SalesForce.
“The motives that drive different institutions to cloud differ,” said head of e-channels, Global Transaction Banking at RBS Alastair Brown in an interview with Business Cloud News. He adds, “Tier One institutions are very much focused on reducing costs, getting to market faster, whereas the Tier Two and Three banks want to roll out services like trade finance that they wouldn’t be able to do alone.”
To know more on how a portfolio management system could streamline your business operations and even simplify your job as a fund manager, contact a trusted asset services firm recognized for providing exceptional client care and innovative technology solutions.
Tuesday, August 04, 2015
Portfolio Management: Rebuilding Trust Through Technology
After the economic drop of 2008, portfolio management, also known as the art and science of making decisions about investment mix and policy, asset allocation and balancing risk against performance, became an even more challenging responsibility because of the trauma caused by such chaotic period.
According to SimCorpStrategyLab, rebuilding trust is the main challenge facing global asset managers. With this, they have to ensure clients that all risk challenges, such as operational risk, market risk, regulatory risk and legal risk are properly addressed. It is all about attaining growth despite the cost challenges that they constantly deal with. But the question is how?
Kellogg School of Management, in collaboration with Diamond Cluster International explained that trade press and industry analysts consider IT portfolio management (ITPM) as the key. Out of 130 senior IT executives who participated in their survey, 65 per cent believe that incorporating technology in managing of investments could yield significant value.
Furthermore, their study revealed the primary factors that explain the soaring interest in IT portfolio management.
First is “tighter budgets.” In this case for example, cloud-computing solutions are easier to deploy, hence businesses should expect minimal project start-up costs. Also, since these kinds of services are basically pay as you go, there’s no need for capital expenditure (Cap-Ex) at all, says IT and social media authority SalesForce.
“The motives that drive different institutions to cloud differ,” said head of e-channels, Global Transaction Banking at RBS Alastair Brown in an interview with Business Cloud News.
“Tier One institutions are very much focused on reducing costs, getting to market faster, whereas the Tier Two and Three banks want to roll out services like trade finance that they wouldn’t be able to do alone,” he shared.
Second is “investor skepticism.” After the dismay of investors over lack of corporate governance in the previous years, they have since demanded for greater transparency regarding how spending ties to results. Today, many portfolio management solutions present a single dashboard where administrators and authorized third parties can easily sync findings by keeping all the files in one central location. This does not only enhance transparency, but also data management and collaboration.
Last but not the least would be the “higher expectations” on CIO business skills and accountability. With the help of advanced portfolio management solutions, asset managers are considered more equipped when it comes to real-time monitoring and evaluation of data, as well as formulating disaster recovery plans.
In fact, corporate researchers Aberdeen Group found out that businesses which moved to cloud were able to fix issues in an average of 2.1 hours, and not the typical duration of 8 hours.
To find the portfolio management software that suits your company’s needs, contact a trusted asset services firm recognized for providing exceptional client care and innovative technology solutions.
According to SimCorpStrategyLab, rebuilding trust is the main challenge facing global asset managers. With this, they have to ensure clients that all risk challenges, such as operational risk, market risk, regulatory risk and legal risk are properly addressed. It is all about attaining growth despite the cost challenges that they constantly deal with. But the question is how?
Kellogg School of Management, in collaboration with Diamond Cluster International explained that trade press and industry analysts consider IT portfolio management (ITPM) as the key. Out of 130 senior IT executives who participated in their survey, 65 per cent believe that incorporating technology in managing of investments could yield significant value.
Furthermore, their study revealed the primary factors that explain the soaring interest in IT portfolio management.
First is “tighter budgets.” In this case for example, cloud-computing solutions are easier to deploy, hence businesses should expect minimal project start-up costs. Also, since these kinds of services are basically pay as you go, there’s no need for capital expenditure (Cap-Ex) at all, says IT and social media authority SalesForce.
“The motives that drive different institutions to cloud differ,” said head of e-channels, Global Transaction Banking at RBS Alastair Brown in an interview with Business Cloud News.
“Tier One institutions are very much focused on reducing costs, getting to market faster, whereas the Tier Two and Three banks want to roll out services like trade finance that they wouldn’t be able to do alone,” he shared.
Second is “investor skepticism.” After the dismay of investors over lack of corporate governance in the previous years, they have since demanded for greater transparency regarding how spending ties to results. Today, many portfolio management solutions present a single dashboard where administrators and authorized third parties can easily sync findings by keeping all the files in one central location. This does not only enhance transparency, but also data management and collaboration.
Last but not the least would be the “higher expectations” on CIO business skills and accountability. With the help of advanced portfolio management solutions, asset managers are considered more equipped when it comes to real-time monitoring and evaluation of data, as well as formulating disaster recovery plans.
In fact, corporate researchers Aberdeen Group found out that businesses which moved to cloud were able to fix issues in an average of 2.1 hours, and not the typical duration of 8 hours.
To find the portfolio management software that suits your company’s needs, contact a trusted asset services firm recognized for providing exceptional client care and innovative technology solutions.
Wednesday, April 15, 2015
The Rebirth of Prime Brokerage
Despite notable exits, there have been a lot of new entrants in the foreign exchange (FX) prime brokerage market, such as Saxo Bank and Forex Capital Markets. With the number of new entrants, the brokerage scene is changing rapidly and giving way to the rebirth of the prime brokerage model.
New entrants and smaller players have found that regulatory changes and increased levels of competition make it very hard to participate in the market. Prime brokerage has become a game of scale. It benefits more the big players who can take advantage of multi-asset platforms. These big players have been broadening their service platforms and giving rise to the new “prime of prime model”, which concentrates on micro contract trades and aims for volume.
Advantages of consolidating
A big player in prime brokerage, JP Morgan has led the way in consolidating infrastructure to boost competitiveness and efficiency. They provide clients with a single platform across all products that they trade and strive to maintain a single standard of service. Moving away from the traditional silo approach, they have consolidated their services by looking at clients in a more holistic framework
Operational and capital efficiency are hallmarks of a great prime brokerage company, leaving smaller firms at a disadvantage. However, the availability of outsourced financial services has given boutique firms more options. Startups can take their cue from brokerage giants like JP Morgan and begin structuring a consolidated platform from the get go. This will give them the needed edge in a highly competitive market.
“Prime of Prime”
A prime of prime is a brokerage that provides services to traders, especially FX traders who need micro-contract trades. They allow for trades that have greater leverage, albeit more risk.
The need for prime of primes that provide credit services to smaller brokerage firms increased after credit allocation the market decreased and various firms have exited the scene. These conditions have allowed prime of primes to grow their market share, with FX as their specialization. Carving out their own niche means being able to provide services that are more tailored to the needs of their clients.
Technology as leverage
The changes in the industry and the market have been drastic. It is no longer enough to simply have a big balance sheet. Smaller prime brokerage firms have learned that to compete with the big players, they not only need a more consolidates service platform, but also the advantages of leveraging technology. An efficient technology structure will allow them to scale, produce consistent results, and offer solid services.
New entrants and smaller players have found that regulatory changes and increased levels of competition make it very hard to participate in the market. Prime brokerage has become a game of scale. It benefits more the big players who can take advantage of multi-asset platforms. These big players have been broadening their service platforms and giving rise to the new “prime of prime model”, which concentrates on micro contract trades and aims for volume.
Advantages of consolidating
A big player in prime brokerage, JP Morgan has led the way in consolidating infrastructure to boost competitiveness and efficiency. They provide clients with a single platform across all products that they trade and strive to maintain a single standard of service. Moving away from the traditional silo approach, they have consolidated their services by looking at clients in a more holistic framework
Operational and capital efficiency are hallmarks of a great prime brokerage company, leaving smaller firms at a disadvantage. However, the availability of outsourced financial services has given boutique firms more options. Startups can take their cue from brokerage giants like JP Morgan and begin structuring a consolidated platform from the get go. This will give them the needed edge in a highly competitive market.
“Prime of Prime”
A prime of prime is a brokerage that provides services to traders, especially FX traders who need micro-contract trades. They allow for trades that have greater leverage, albeit more risk.
The need for prime of primes that provide credit services to smaller brokerage firms increased after credit allocation the market decreased and various firms have exited the scene. These conditions have allowed prime of primes to grow their market share, with FX as their specialization. Carving out their own niche means being able to provide services that are more tailored to the needs of their clients.
Technology as leverage
The changes in the industry and the market have been drastic. It is no longer enough to simply have a big balance sheet. Smaller prime brokerage firms have learned that to compete with the big players, they not only need a more consolidates service platform, but also the advantages of leveraging technology. An efficient technology structure will allow them to scale, produce consistent results, and offer solid services.
Monday, February 02, 2015
Institutional Investors Favor Hedge Funds
The financial industry crisis has exposed the unpredictability of the market, which in turn, has placed the odds in favor of hedge funds. Institutional investors, notorious for their conservatism, are now placing their bets on the less regulated hedge fund model. Hedge funds have demonstrated their ability to make strategic, risk-driven returns that take advantage of the market’s vulnerabilities.
Mutual Fund Model
The more passive mutual fund model has become less popular among institutional investors. Mutual fund administrators buy and then hold on to investments for longer periods of time. They take less risk compared to hedge funds. This means mutual funds lose the many immediate, profit-generating opportunities that are presented by the volatile movement of the market.
Hedge Fund Model
Pension funds and other institutional investors have increasingly been placing their money into hedge fund investments.Hedge funds are riskier, but can be significantlymore profitable, especially when fund administrators possess sufficient experience and exceptional strategy that can maximize returns both in the short-term and the long-term.
Talented Fund Managers
Hedge fund management has also been witnessing an influx of talent. Investors are aware of this trend and expect the most competent traders and administratorsto be in the hedge fund industry. These asset managementprofessionals were turned off by the heavily regulated and more conservative mutual fund industry. They prefer the hedge fund model, where they have more freedom to strategize and execute moves that lead to big returns.
The Demands
Institutional investors, who now contribute more than 70% of the hedge fund industry’s capital, are used to a highdegree of service and customer care. They expect transparency and more disclosure of information.
The traditional hedge fund approach of relying on cache and keeping a “secret sauce” does not hold against the expectation of institutional investors. Hedge fund administrators can no longer be so secretive about their process because their investors demand to know how their assets are being handled.
Institutional investors also put premium on accurate reporting and consistent communication. Used to having robust compliance management for their own institutions, they expect the same from their hedge fund managers.
Profit Margins and Capital Growth
To meet the demands of their institutional investors, hedge funds are now building fund reporting frameworks and acquiring other technology that can improve client relations and build investor trust. Marketing, PR, and compliance management now make up 5% to 10% of operational costs. This move decreases their profit margins significantly, but in the end, the benefits seem to outweigh the cost as more hedge funds follow the trend in order to attract new investors and keep existing ones.
Mutual Fund Model
The more passive mutual fund model has become less popular among institutional investors. Mutual fund administrators buy and then hold on to investments for longer periods of time. They take less risk compared to hedge funds. This means mutual funds lose the many immediate, profit-generating opportunities that are presented by the volatile movement of the market.
Hedge Fund Model
Pension funds and other institutional investors have increasingly been placing their money into hedge fund investments.Hedge funds are riskier, but can be significantlymore profitable, especially when fund administrators possess sufficient experience and exceptional strategy that can maximize returns both in the short-term and the long-term.
Talented Fund Managers
Hedge fund management has also been witnessing an influx of talent. Investors are aware of this trend and expect the most competent traders and administratorsto be in the hedge fund industry. These asset managementprofessionals were turned off by the heavily regulated and more conservative mutual fund industry. They prefer the hedge fund model, where they have more freedom to strategize and execute moves that lead to big returns.
The Demands
Institutional investors, who now contribute more than 70% of the hedge fund industry’s capital, are used to a highdegree of service and customer care. They expect transparency and more disclosure of information.
The traditional hedge fund approach of relying on cache and keeping a “secret sauce” does not hold against the expectation of institutional investors. Hedge fund administrators can no longer be so secretive about their process because their investors demand to know how their assets are being handled.
Institutional investors also put premium on accurate reporting and consistent communication. Used to having robust compliance management for their own institutions, they expect the same from their hedge fund managers.
Profit Margins and Capital Growth
To meet the demands of their institutional investors, hedge funds are now building fund reporting frameworks and acquiring other technology that can improve client relations and build investor trust. Marketing, PR, and compliance management now make up 5% to 10% of operational costs. This move decreases their profit margins significantly, but in the end, the benefits seem to outweigh the cost as more hedge funds follow the trend in order to attract new investors and keep existing ones.
Wednesday, December 17, 2014
Saving Your Investors: Hedge Fund Management Tips
When it comes to hedge funds, it can be hard to look at them and see the people behind the money. The truth of the matter is that when you want to make a difference and you want your hedge fund to succeed, you need to make sure that the investors are kept both in touch with what is going on and are made willing to see your vision. When you are looking at Investor Relations Hedge Fund talks should always be kept open and honest. Here are some tips for you to consider when you want to make sure that your investors are on board.
Respond Quickly
To improve Investor Relations Hedge Fund managers must always be communicative. When you are dealing with the vast amounts of money and resources that you are, there is no reason at all why you should delay in any kind of response. You will have investors that seem very clingy, and you will absolutely have investors who are demanding. No matter what their message is, they deserve a response. If you have to delegate a communications officer to make sure that their needs get met, do it. There is absolutely nothing to be gained from putting off answering your investors, and the faster you respond, the happier they will be.
State of the Investment
Routine updates are always the way to go when you are managing a hedge fund. Everyone knows that things can change on the blink of an eye, but when they don't, people still like to have updates on what is going on. Routine emails, texts or social media messages will keep everyone on the same page. When you want to make sure that your investors stay happy with you, this is the way to do it.
Utilize Social Media
When it comes to Investor Relations Hedge Fund managers must always have their facts in order. One of the best ways to get people on the same page regarding what is going on is to use social media. Social media, whether it is in the form of Twitter or Facebook, is one way to make sure that your hedge fund is very accessible. It allows people to check in with what you are doing on a very regular, very immediate basis. While you should always be very choose about the information that you have chosen to share, you will also discover that this is a good way to alert people to interesthing things that are happening.
Give Them Lots of Information
For experts who are looking at Investor Relations Hedge Fund resources must always be clear and concise. Sometimes, the information that they need to see will not always be readily available. Just as you need to track the market and to be aware of what is going on and why, you must be willing to provide the figures that most interest them. Do not be shy about bringing in an analyst or someone with the numbers and figures that they need to see. A professional opinion once in a while can make a big difference.
If you are in a place where you are looking at investor relations hedge fund management must always be willing to step in and lend a hand. When you are dealing with this much money and this many expectations, it is always important to make sure that you are being clear. A single wrong move can cause a great deal of panic and concern, and that is the last thing you want. See your investors as people at all times, and you will find that it is much easier to move forward.
Respond Quickly
To improve Investor Relations Hedge Fund managers must always be communicative. When you are dealing with the vast amounts of money and resources that you are, there is no reason at all why you should delay in any kind of response. You will have investors that seem very clingy, and you will absolutely have investors who are demanding. No matter what their message is, they deserve a response. If you have to delegate a communications officer to make sure that their needs get met, do it. There is absolutely nothing to be gained from putting off answering your investors, and the faster you respond, the happier they will be.
State of the Investment
Routine updates are always the way to go when you are managing a hedge fund. Everyone knows that things can change on the blink of an eye, but when they don't, people still like to have updates on what is going on. Routine emails, texts or social media messages will keep everyone on the same page. When you want to make sure that your investors stay happy with you, this is the way to do it.
Utilize Social Media
When it comes to Investor Relations Hedge Fund managers must always have their facts in order. One of the best ways to get people on the same page regarding what is going on is to use social media. Social media, whether it is in the form of Twitter or Facebook, is one way to make sure that your hedge fund is very accessible. It allows people to check in with what you are doing on a very regular, very immediate basis. While you should always be very choose about the information that you have chosen to share, you will also discover that this is a good way to alert people to interesthing things that are happening.
Give Them Lots of Information
For experts who are looking at Investor Relations Hedge Fund resources must always be clear and concise. Sometimes, the information that they need to see will not always be readily available. Just as you need to track the market and to be aware of what is going on and why, you must be willing to provide the figures that most interest them. Do not be shy about bringing in an analyst or someone with the numbers and figures that they need to see. A professional opinion once in a while can make a big difference.
If you are in a place where you are looking at investor relations hedge fund management must always be willing to step in and lend a hand. When you are dealing with this much money and this many expectations, it is always important to make sure that you are being clear. A single wrong move can cause a great deal of panic and concern, and that is the last thing you want. See your investors as people at all times, and you will find that it is much easier to move forward.
Thursday, September 25, 2014
How to Market Your Hedge Fund
With all of the distrust between the financial industry and the general public, marketing a hedge fund is a tricky business. At the same time, there is a great deal of opportunity for private hedge funds with the right hedge fund marketing strategy. Below are some of the best ways that you can start your own boutique hedge fund through the correct marketing techniques that speak to the needs of investors today.
Hedge Fund Marketing Tips
First, make sure the you have a personal connection in your hedge fund marketing materials. People definitely want to see the numbers that you have; however, they also want to know who you are as a person. Much of the distrust between the general public and the mainstream investment community is the fact that management teams do not stay put over the long-term. If you are to build a clientele, people need to know that they can count on you for decades to come.
You can create this kind of hedge fund marketing material by speaking in a language that your clientele can understand. You should also play up all of your long-term relationships. If you have any clients that carried over from previous employment, this is a gold mine for obtaining new clientele.
Second, make sure that your hedge fund marketing materials are directed at the right people.
Currently, there is a great deal of controversy surrounding the so-called new audience of hedge funds. In short, hedge funds are trying to appeal to accredited investors in the lower end of the spectrum. Private hedge fund companies are using promotional techniques such as YouTube in order to get in front of an entirely new audience. The results have been staggeringly positive.
As a matter fact, the only hedge funds that are not truly succeeding today are the ones who refuse to take on this new audience. These are the people who need hedge fund consultations the most – they have just enough expendable income to give to an outside professional investor; however, they most likely do not have the time to invest the money themselves. Direct your new marketing efforts at this crowd and watch your clientele build quickly.
Third, use new social media techniques in order to attract the audience that you want.
As mentioned above, many hedge funds are actually using YouTube and other social media in order to connect with the new hedge fund audience. Transparency is the key. Be sure that you always have an opening here to your clientele and your potential clientele. You want to answer questions on Facebook. You may even want to put up an Instagram so that your audience can feel as though they understand you from an insiders' perspective.
In short, do not be afraid to take on new marketing techniques in order to attract the audience that is looking for your services today. Deal with all accredited investors instead of looking for the big fish. Marketing in this manner will give you an audience that is growing and in need of your services.
Hedge Fund Marketing Tips
First, make sure the you have a personal connection in your hedge fund marketing materials. People definitely want to see the numbers that you have; however, they also want to know who you are as a person. Much of the distrust between the general public and the mainstream investment community is the fact that management teams do not stay put over the long-term. If you are to build a clientele, people need to know that they can count on you for decades to come.
You can create this kind of hedge fund marketing material by speaking in a language that your clientele can understand. You should also play up all of your long-term relationships. If you have any clients that carried over from previous employment, this is a gold mine for obtaining new clientele.
Second, make sure that your hedge fund marketing materials are directed at the right people.
Currently, there is a great deal of controversy surrounding the so-called new audience of hedge funds. In short, hedge funds are trying to appeal to accredited investors in the lower end of the spectrum. Private hedge fund companies are using promotional techniques such as YouTube in order to get in front of an entirely new audience. The results have been staggeringly positive.
As a matter fact, the only hedge funds that are not truly succeeding today are the ones who refuse to take on this new audience. These are the people who need hedge fund consultations the most – they have just enough expendable income to give to an outside professional investor; however, they most likely do not have the time to invest the money themselves. Direct your new marketing efforts at this crowd and watch your clientele build quickly.
Third, use new social media techniques in order to attract the audience that you want.
As mentioned above, many hedge funds are actually using YouTube and other social media in order to connect with the new hedge fund audience. Transparency is the key. Be sure that you always have an opening here to your clientele and your potential clientele. You want to answer questions on Facebook. You may even want to put up an Instagram so that your audience can feel as though they understand you from an insiders' perspective.
In short, do not be afraid to take on new marketing techniques in order to attract the audience that is looking for your services today. Deal with all accredited investors instead of looking for the big fish. Marketing in this manner will give you an audience that is growing and in need of your services.
Wednesday, July 30, 2014
Fact Sheet Design - A Brief Overview
Although there are a variety of ways that business professionals and educators can convey important information to their audiences, the use of a fact sheet can be particularly efficacious. By learning more about fact sheets and basic principles of fact sheet design, you can increase your ability to communicate effectively with other individuals.
Fact Sheets - The Basics
Fact sheets are sheets designed to provide the reader with information regarding any given subject. While there are several principles that are used to determine what constitutes a good fact sheet, one of the most primary concepts is that overloading the reader or listener with too much information is disadvantageous and unnecessary. Additionally, many fact sheet experts agree that fact sheet design plays an important role in determining how the information being examined is received and interpreted.
Fact Sheet Design - A Brief Overview
Although defined broadly, fact sheet design is basically a system of principles used to provide structure to the format and aesthetic component of fact sheets. There are a wide variety of rules and regulations that guide the world of fact sheet design, and some of them include:
Conclusion
As made plain by the information listed above, fact sheets are an incredibly effective way to communicate data with one's audience. To make the most of this form of communication, however, it is important that individuals gain a basic understanding of fact sheet design. In grasping and then utilizing the fact sheet design principles and procedures outlined above, individuals interested in being able to provide their audiences with data in a clear, concise format will be able to do so.
Fact Sheets - The Basics
Fact sheets are sheets designed to provide the reader with information regarding any given subject. While there are several principles that are used to determine what constitutes a good fact sheet, one of the most primary concepts is that overloading the reader or listener with too much information is disadvantageous and unnecessary. Additionally, many fact sheet experts agree that fact sheet design plays an important role in determining how the information being examined is received and interpreted.
Fact Sheet Design - A Brief Overview
Although defined broadly, fact sheet design is basically a system of principles used to provide structure to the format and aesthetic component of fact sheets. There are a wide variety of rules and regulations that guide the world of fact sheet design, and some of them include:
- The fact sheet should not exceed one page.
- To ensure that the fact sheet is readable, the font should be at least 12 point.
- The most important information should be located in the fact sheet's first paragraph. (Generally, important information will include things such as what the subject matter is and what type of actions should result from considering the information that has been presented.)
- The fact sheet presenter should include references the audience can access in order to attain more information about the subject being discussed. In the event that the fact sheet is presented in electronic format, the use of links would be appropriate and advantageous.
- The use of bullets creates a sense of order and continuity, meaning that their use within the body of the fact sheet is a good idea.
- If you are attempting to emphasize a specific concept or theme, the use of bold letters is appropriate.
- Graphics can be utilized to create emphasis or simply draw attention to a specific concept, but they should not "steal the thunder" of the fact sheet.
- The fact sheet should be designed in a manner that enables the reader to take any form of action the presenter desires. For example, if the presenter wants his or her audience members to call the governor in response to reading the fact sheet, this individual's number should be located somewhere on the fact sheet.
Conclusion
As made plain by the information listed above, fact sheets are an incredibly effective way to communicate data with one's audience. To make the most of this form of communication, however, it is important that individuals gain a basic understanding of fact sheet design. In grasping and then utilizing the fact sheet design principles and procedures outlined above, individuals interested in being able to provide their audiences with data in a clear, concise format will be able to do so.
Thursday, June 19, 2014
The 3 Main Types of Hedge Fund Marketing
As with most every other type of financial campaign, hedge fund marketing can be broken down into 2 or 3 distinct methods.
With a type 1 plan, the managers or sponsors of the fund perform all of the marketing tasks without a need for a third party to intervene on their behalf. The business of getting the word out is done entirely in-house in order to keep the strategy lean. In most cases, the leader of the marketing group will have dedicated employees whose sole task is devoted to this process. Many of them may also receive all or part of their compensation in the form of commissions or bonuses as a result of getting customers enrolled into the fund.
In order to use this approach however, the manager of the fund has to be able to obtain a broker dealer-license in the United States. That is so the proper regulations can be maintained. There are stringent standards that must be met before this type of licensure can be obtained.
The second approach calls for sponsors of the fund to have agents or finders in place in order to perform the hedge fund marketing tasks. All of the pre-contact work is done outside of the office and the leads are funneled into the firm for closure. This outsourcing arrangement calls for the agents to receive their compensation through shares of the fund performance from the managers. The drawback to this type of plan is that according to broker-dealer licensing rules, the finders cannot be compensated on a contingent basis. The United States prohibits this type of practice in companies specializing in hedge funds, but it is often how the strategy is set up anyway.
The last kind of hedge fund marketing practice involves major players on Wall Street such as Merrill Lynch or Morgan Stanley for example. The funds and their sponsors actually enter into a formal arrangement with these firms on a contract basis. Under these kinds of terms, the giant enterprises are paid from fees obtained like the agents, but they can also receive additional compensation from a sales charge or placement fee, making it advantageous for them to enter into this type of agreement.
It is not easy to perform hedge fund marketing. There are strict regulations set up in the United States of America for hedge fund marketing and these are enforced through the National Association of Securities Dealers who helped to set up the policies to ensure that fair practices are used to protect investors and their assets.
With a type 1 plan, the managers or sponsors of the fund perform all of the marketing tasks without a need for a third party to intervene on their behalf. The business of getting the word out is done entirely in-house in order to keep the strategy lean. In most cases, the leader of the marketing group will have dedicated employees whose sole task is devoted to this process. Many of them may also receive all or part of their compensation in the form of commissions or bonuses as a result of getting customers enrolled into the fund.
In order to use this approach however, the manager of the fund has to be able to obtain a broker dealer-license in the United States. That is so the proper regulations can be maintained. There are stringent standards that must be met before this type of licensure can be obtained.
The second approach calls for sponsors of the fund to have agents or finders in place in order to perform the hedge fund marketing tasks. All of the pre-contact work is done outside of the office and the leads are funneled into the firm for closure. This outsourcing arrangement calls for the agents to receive their compensation through shares of the fund performance from the managers. The drawback to this type of plan is that according to broker-dealer licensing rules, the finders cannot be compensated on a contingent basis. The United States prohibits this type of practice in companies specializing in hedge funds, but it is often how the strategy is set up anyway.
The last kind of hedge fund marketing practice involves major players on Wall Street such as Merrill Lynch or Morgan Stanley for example. The funds and their sponsors actually enter into a formal arrangement with these firms on a contract basis. Under these kinds of terms, the giant enterprises are paid from fees obtained like the agents, but they can also receive additional compensation from a sales charge or placement fee, making it advantageous for them to enter into this type of agreement.
It is not easy to perform hedge fund marketing. There are strict regulations set up in the United States of America for hedge fund marketing and these are enforced through the National Association of Securities Dealers who helped to set up the policies to ensure that fair practices are used to protect investors and their assets.
Wednesday, May 07, 2014
Using Software Programs for Hedge Fund Accounts
For those making use of hedge fund software, they are able to quickly and easily keep an eye on their investments as well as to better organize this particular fund. When someone creates a hedge fund for themselves, the fund itself relies on very risky investments to grow at a more rapid rate. These types of funds are ideal for people who want to increase their own net worth or for companies that are trying to expand and make the most out of their endeavors.
Because of the fact that hedge funds rely on risky investments, it can be very difficult to avoid losing a lot of money when putting it into them. Many people who are using their own hedge funds and have these types of accounts available to them have lost a lot of money. One of the reasons for losing a lot of money with a hedge fund is that you may not be able to keep an eye on investments or keep all of the money that you have put into the fund organized in a manner that is beneficial to you.
There are a lot of benefits to using hedge fund software on a routine basis. One benefit is that it enables the person using it to look closely at their investments and to see how their fund is truly growing. This is a good way for them to also better organize their funds and to ensure that they are making the wisest decisions possible concerning this type of account. Having a software program designed specifically with this organization in mind is what will help anyone who has a hedge fund to truly make it a success and make the most money off of it in the long run.
The fact that hedge funds are difficult to invest into is definitely nothing new for people who are used to these types of accounts. The thing that might be new to those making these investments is that a good quality hedge fund software can help tremendously in terms of keeping things more organized so that investments are made in a better manner. There are a lot of reasons why some people have chosen to use this type of program, but being able to keep themselves fully organized is definitely one of the main reasons. Downloading this type of program can definitely help you in the long run as well.
Because of the fact that hedge funds rely on risky investments, it can be very difficult to avoid losing a lot of money when putting it into them. Many people who are using their own hedge funds and have these types of accounts available to them have lost a lot of money. One of the reasons for losing a lot of money with a hedge fund is that you may not be able to keep an eye on investments or keep all of the money that you have put into the fund organized in a manner that is beneficial to you.
There are a lot of benefits to using hedge fund software on a routine basis. One benefit is that it enables the person using it to look closely at their investments and to see how their fund is truly growing. This is a good way for them to also better organize their funds and to ensure that they are making the wisest decisions possible concerning this type of account. Having a software program designed specifically with this organization in mind is what will help anyone who has a hedge fund to truly make it a success and make the most money off of it in the long run.
The fact that hedge funds are difficult to invest into is definitely nothing new for people who are used to these types of accounts. The thing that might be new to those making these investments is that a good quality hedge fund software can help tremendously in terms of keeping things more organized so that investments are made in a better manner. There are a lot of reasons why some people have chosen to use this type of program, but being able to keep themselves fully organized is definitely one of the main reasons. Downloading this type of program can definitely help you in the long run as well.
Wednesday, April 02, 2014
Hedge Fund Fact Sheets
Hedge funds are frequently among the most profitable investment funds in the world. While they can make a lot of money, in order to make the most amount of money possible, they need to be able to raise capital from investors. The process of raising capital can be challenging as it requires being able to sell potential investors on the benefits that come with investing in the fund. When looking start raising capital, all hedge funds should put together a hedge fund fact sheet to show their investors. When looking to put together a hedge fund fact sheet, there are various pieces of information that should be included.
One of the items that should be included on any hedge fund fact sheet is the investment strategy. Hedge funds have a very open range of investments that they can choose from. Hedge funds can invest in pretty much anything that they would like in pretty much any market located across the world. To entice investors, a hedge fund should include information that display what their investment strategy is and where their capital is invested. If they are planning on making investment changes in the future, it should be included on the fact sheet as well.
Another item that should be included on the hedge fund fact sheet is what the prior investment returns have been. Investors will want to see how successful the fund has been in the past when it comes to investing. A hedge fund should clearly post what their prior rates of return have been, how different investments have fared in past, and how their investment returns have to similar investment funds.
The third item that should be included on a fact sheet is how the company complies with regulations. The company should state that they are in compliance with all federal regulations that mandate hedge funds and whether their results are audited by a third party accounting firm. This will give an investor comfort that the results that are being advertised are legitimate.
One of the items that should be included on any hedge fund fact sheet is the investment strategy. Hedge funds have a very open range of investments that they can choose from. Hedge funds can invest in pretty much anything that they would like in pretty much any market located across the world. To entice investors, a hedge fund should include information that display what their investment strategy is and where their capital is invested. If they are planning on making investment changes in the future, it should be included on the fact sheet as well.
Another item that should be included on the hedge fund fact sheet is what the prior investment returns have been. Investors will want to see how successful the fund has been in the past when it comes to investing. A hedge fund should clearly post what their prior rates of return have been, how different investments have fared in past, and how their investment returns have to similar investment funds.
The third item that should be included on a fact sheet is how the company complies with regulations. The company should state that they are in compliance with all federal regulations that mandate hedge funds and whether their results are audited by a third party accounting firm. This will give an investor comfort that the results that are being advertised are legitimate.
Thursday, February 27, 2014
How Hedge Fund Investor Relations Work
An investor relations department is designed to create trust and understanding between shareholders, analysts and financial media. When an investor relations department works effectively, it can create confidence in a company. In addition, it can increase the amount of long term investors that take part in a company. It will also reduce the cost of capital. Various companies are normally able to obtain investor relations teams by hiring a public relations firm that has financial capabilities. Creating a hedge fund investor relations team as an internal department can also be done as well.
What an Investor Relations Team Does
A hedge fund investor relations program is designed to build an investor’s confidence in a company’s ability to create enough value that can match the financer’s investments. In order to do this, someone that works in an investor relations department has to be able to explain the long term vision of the company. This can help to ensure that the shareholder’s value does not decrease in the future.
Building Relationships
One of the most important things that an investor relations team does includes building relationships between investors and companies that can withstand the test of time. This includes building an important amount of trust. This is done by fulfilling various types of responsibilities for investors. For example, this might include the disclosure of different types of information. Hedge fund investor relations can also persuade communication between both parties.
Measuring Effectiveness
Investor relations teams are able to provide promotion services as well. This team should be able to promote the retention of a company’s stock. They can also promote the purchase of the same stock. In order to do this, the investor relations team has to perform research on different types of issues that might affect the reputation of that company. A hedge fund investor relations team must also respond to requests for different types of financial data and create portfolios concerning information about all investors that are involved. Every company has to take the time to find out how effective their hedge fund investor relations team has been. This can help companies learn more about the return on investment that is often associated with investor relations. If a team is not helping a company create a better relationship with its investors, more work will need to be done. It is important for a company to remember that the main factor in investor relations includes research.
What an Investor Relations Team Does
A hedge fund investor relations program is designed to build an investor’s confidence in a company’s ability to create enough value that can match the financer’s investments. In order to do this, someone that works in an investor relations department has to be able to explain the long term vision of the company. This can help to ensure that the shareholder’s value does not decrease in the future.
Building Relationships
One of the most important things that an investor relations team does includes building relationships between investors and companies that can withstand the test of time. This includes building an important amount of trust. This is done by fulfilling various types of responsibilities for investors. For example, this might include the disclosure of different types of information. Hedge fund investor relations can also persuade communication between both parties.
Measuring Effectiveness
Investor relations teams are able to provide promotion services as well. This team should be able to promote the retention of a company’s stock. They can also promote the purchase of the same stock. In order to do this, the investor relations team has to perform research on different types of issues that might affect the reputation of that company. A hedge fund investor relations team must also respond to requests for different types of financial data and create portfolios concerning information about all investors that are involved. Every company has to take the time to find out how effective their hedge fund investor relations team has been. This can help companies learn more about the return on investment that is often associated with investor relations. If a team is not helping a company create a better relationship with its investors, more work will need to be done. It is important for a company to remember that the main factor in investor relations includes research.
Tuesday, January 14, 2014
Considering the Importance of Hedge Fund Marketing Materials
Hedge fund marketing materials have the ability to take your hedge fund to the next level. Whether you want to gain new investors or make a presentation at a hedge fund conference, hedge fund marketing materials show that your fund has a serious approach to the industry. You should be concerned about showing how your hedge fund professionals are dedicated to professionalism and communication with investors. These are some of the greatest values that investors have.
Creating One-Pagers with Visual Appeal
Too many hedge funds go wrong when they create one-pagers that lack visual appeal. These one-pagers often have too much information. The font may be too small, and investors can barely read about what a hedge fund has to offer. It is important to simplify the information that is provided on a one-pager to its most basic components. Instead of overwhelming an investor, only the top three accomplishments of a hedge fund should be listed on the document. This information can then serve as a springboard for further questions and discussion with the investor. A marketing specialist can help your hedge fund to create visually appealing hedge fund marketing materials.
Learning Communication Strategies for Investors
Hedge fund marketing specialists can also help you learn about great communication strategies to use with investors. You may not have any knowledge about the number of weekly communications required to build a rapport with investors. A marketing specialist can help you learn about the benefits of keeping in touch with investors on a regular basis. There may be email applications that you can use to communicate with investors and that can help you remember to keep in touch with investors. If you only have a staff of a few people who work for your hedge fund, then an email application may be a great way to maximize the productivity of your employees. Consulting service will also help you learn how to write effective emails that make investors feel good about their decision to invest with your fund.
Creating hedge fund marketing materials with help from marketing professionals is essential for attracting new investors. Whether you need to create pitch books that have a better design or want to learn more about using social media to build up your investor base, there are marketing professionals who are available to help you at each step of the process. Marketing professionals can help you reach success with your hedge fund.
To learn more about hedge fund marketing materials, visit http://oviscreative.com/creative-services/messaging.pl.
Creating One-Pagers with Visual Appeal
Too many hedge funds go wrong when they create one-pagers that lack visual appeal. These one-pagers often have too much information. The font may be too small, and investors can barely read about what a hedge fund has to offer. It is important to simplify the information that is provided on a one-pager to its most basic components. Instead of overwhelming an investor, only the top three accomplishments of a hedge fund should be listed on the document. This information can then serve as a springboard for further questions and discussion with the investor. A marketing specialist can help your hedge fund to create visually appealing hedge fund marketing materials.
Learning Communication Strategies for Investors
Hedge fund marketing specialists can also help you learn about great communication strategies to use with investors. You may not have any knowledge about the number of weekly communications required to build a rapport with investors. A marketing specialist can help you learn about the benefits of keeping in touch with investors on a regular basis. There may be email applications that you can use to communicate with investors and that can help you remember to keep in touch with investors. If you only have a staff of a few people who work for your hedge fund, then an email application may be a great way to maximize the productivity of your employees. Consulting service will also help you learn how to write effective emails that make investors feel good about their decision to invest with your fund.
Creating hedge fund marketing materials with help from marketing professionals is essential for attracting new investors. Whether you need to create pitch books that have a better design or want to learn more about using social media to build up your investor base, there are marketing professionals who are available to help you at each step of the process. Marketing professionals can help you reach success with your hedge fund.
To learn more about hedge fund marketing materials, visit http://oviscreative.com/creative-services/messaging.pl.
Subscribe to:
Posts (Atom)