Deconstruct and Blending: How AIFM offers investors a more efficient way to use hedge funds in global portfolios
Will AIFM become a global standard, offering global distribution benefits to compliant managers, just like UCITS?
The AIFM will not apply to entities such as governments managing funds
At the same time, it is imperative that all AIFM active in the EU are
EDHEC-Risk suggests improved regulation of investment funds and properly designed incentives: incentives to invest in illiquid assets could be designed in regulated closed funds with a fixed horizon; incentives to adopt the AIFM
directive must be given by modifying the prudential regulation of European institutional investors, notably insurers, and authorising them to invest directly in funds that comply with the AIFM
directive; incentives to manage rather than to insure non-financial risks must be given by defining more clearly the responsibilities of distributors, asset managers, depositaries, and valuators.
managers, the opportunity is too big to overlook and by engaging an AIFM such as DMS, U.
With an outsourced AIFM, the advantage is that all the heavy lifting has now been done and this now allows U.
Under the proposed legislation, AIFMs
in third countries would have to
which manage funds whose only investors are the AIFM
itself and group companies of the AIFM
will not be required to comply with the Directive, provided that none of the investors are themselves funds;
Commissioner McCreevy stated at the end of May his intention to raise the liability of UCITS depositaries at least to the level of AIFM
as a reaction to the Madoff losses in some UCITS based in Luxembourg and Ireland.
Kenneth Greig Edinburgh Partners AIFM
Limited Tel: 0131 270 3800 The Company's registered office address is:
by the AIFM
and the Portfolio Manager, believe that this amendment would