Despite being a growing reservoir of funds under management, this critically important pool of capital is confronting mounting problems collating and disseminating key data in a timely manner.
The ratings house is pinning its growth strategy on a revamped methodology that increases the emphasis on governance to 25 per cent – a timely move considering APRA’s proposed reforms.
Aussie alternative managers still to react to AIFMD
(Pictured: Justin Burman)
Australian alternative managers who market their capabilities in Europe, such as infrastructure, private equity and real estate specialists, need to comply with the Alternative Investment Fund Managers Directive (AIFMD). A number are yet to do so, according to BNP Paribas.
BNP Paribas Securities Services has developed a guide for managers with the latest requirements, known as “Annexure IV”. View here
Justin Burman, BNP’s head of product for asset and fund services in Australia, says: “The AIFMD Annex IV transparency reporting requirements represent a major challenge for fund managers in that they are required to periodically report to regulators on each alternative investment fund they manage or market within the European Union.
“Fund managers must disclose details of principal markets and instruments in which the AIFM trades on behalf of the managed fund, along with key instruments that are actively traded and principal exposures and concentrations for each AIF. The AIF reports also cover a number of risk topics including market, counterparty, and liquidity risks.
“Compiling the report entails collecting, enriching, classifying and validating data from multiple sources and performing complex calculations. Fund managers must ensure that the reports are delivered on time and in the correct format, which will depend on the system used by the national competent authority in question.”
He added: “Depending on the fund manager, the cost of setting up a reporting infrastructure for AIFMD could be in the range of hundreds of thousands to millions of euros. It is a demanding process for which we have developed a solution which will help ease the burden for our clients and allow them to focus their effort on the strategic management of their funds.”
