Archives

Vendor appraisals

Problems with third-party Mifid II solutions dogged hedge fund managers in the run up to implementation and have lingered thereafter. From sub-standard and flawed services, to incomplete solutions being rushed to market, operations staff have made their feelings known. But are the headlines reflective of wider sentiment? After all, a disappointed client is more likely to voice their experience than a satisfied customer. This section explores these issues and more, focusing on two key processes: Authorised Reporting Mechanisms (ARM) and Transaction Cost Analysis (TCA).



Data management

The EU’s new data protection rules, General Data Protection Regulation (GDPR), have further complicated managers’ efforts to address the tenets of Mifid II – and not just firms headquartered in Europe. From the challenges of and solutions to GDPR, to the extent to which managers are recording staff communications, this third section explores the ways managers are affected by the EU regulation and the precautions managers all over the globe are taking to ensure compliance.



Conclusion

The roll out of Mifid II has not been comfortable for hedge fund managers, and it is clear from our... Read More



Research Unbundling

One of the key pillars of Mifid II, research unbundling poses questions for a particularly wide range of managers, including AIFMs and Ucits ManCos operating in the UK thanks to ‘gold plating’ by the local regulator. Should research be charged to the fund or firm? Should it be unbundled globally or just in the EU? And, perhaps most importantly, how much ought a manager pay for a service previously provided free of charge? These issues and more are addressed in our second section.



Lay of the land

The initial consultations on the second iteration of the Markets in Financial Instruments Directive (Mifid) began in 2010 and came hot on the heels of another directive affecting hedge fund managers, AIFMD. This first section of HFM’s Mifid II themed report seeks to measure the directive’s impact on the hedge fund industry by looking at the proportion of firms that hold a Mifid licence, the location of these firms and the actions they have taken in response to the directive.



Introduction

Executive Summary Mifid II has generated numerous headlines in the past 12 months, not least in HFM publications, and few... Read More



Mifid II Progress

A look at the challenges faced and battles won by hedge fund managers and vendors affected by recent EU regulation



CRM Solutions

A common way of tracking client communications, both internal and external, is through the use of a CRM (Customer Relationship Management) software package. But, as many hedge fund managers will know, finding the right CRM is not as simple as it may appear, with certain systems better suited to certain types of business and IR/marketing set-ups. Should you be considering an alternative CRM system? In the third section of this report we take an in-depth look at the most popular providers of CRMs, what they have to offer, and how satisfied managers are with their service.



Growing Pains

Having reappraised the data from our previous sections, HFM had one overarching question: how does the way a manager communicates with its clients change as it evolves? From the frequency and form of standard communication, to CRM solutions and supplementary actions, this final section sets out to a provide an answer, and, in doing so, a sense of how much control an IR/marketing professional can hope to exert over such matters as the business around them changes.



Conclusion

If our main task was to establish whether investors are satisfied with the approach managers are taking to client communications,... Read More



Introduction

Executive Summary Effective communication within the team and across the firm is a key part of keeping clients happy and... Read More



Staying in touch

How and how often do managers communicate with their investors? Monthly and quarterly investor letters may be the industry standard, but some managers, for a host of reasons, choose alternative methods. From video calls and podcasts to client events and white papers, hedge fund firms have myriad options to reach current and new investors and build up their brand. We explore all this, and more, in this first section, as we seek to establish the status quo and get a sense of investor preferences.