SwissAnalytics’ CEO Christian Nauer was invited to speak at the CALAPRS Investment Officers’ Roundtable on February 8th 2013 in San Jose, CA. Asked to introduce best practices in investment manager and service provider due diligence, Christian Nauer will be providing insight into which areas warrant particular attention and why. Furthermore, he will be introducing techniques how to address certain aspects of conducting due diligence and how to make the most out of an onsite visit. Offering ‘war stories’ he will be sharing common issues encountered and how they may be mitigated.

Separately managed accounts and managed account platforms enjoy increasing popularity among investors. While separately managed accounts have several benefits which help mitigate operational risks compared to a direct investment in an investment fund they are subject to several challenges. Managed account platforms can address some of these challenges but in some cases the term managed account platform can be misleading as some managed account platforms are more like structured products.

To download a copy of the paper, please go the White Paper section.

Christian Nauer, CEO of SwissAnalytics, and his co-panelists Ruchi Nirula, Director, Asset Management, SwissRe, and Rufus Rankin, Director of Portfolio Management, Equinox Fund Management, discussed the impacts of out- or co-sourcing due diligence to an external provider at the GAIM Ops Europe 2012 conference in Paris.
Download the paper to obtain their opinion on potential problems, merits, scope and costs of contracting an external provider to conduct due diligence.

To download a copy of the white paper, please go to the White Paper section.

Staying current on the latest developments in operational due diligence is important for SwissAnalytics. Hence, Christian Nauer, our CEO, attended and spoke at the GAIM Ops Europe 2011 conference in Geneva, a gathering of industry experts. The conference hosted some very interesting sessions during which one could observe lively debates and discussions about current trends in operational due diligence.

Some of the key messages were:

• Operational Due Diligence has established itself as “Best Practice”.
• Corporate Governance remains weak in many cases.
• There is a disconnect between the duty as perceived by the service providers and their actual legal duty.
• True segregation of assets is available with most prime brokers and custodians, as long as one is willing to pay the additional premium.

To download a copy of the white paper, please go to the White Paper section.

Experience the Approach and Techniques of an Independent Due Diligence Provider

With less than 3 weeks to go, the program of the educational workshop has been finalized:

Participants will have the opportunity to learn first-hand how a dedicated due diligence provider investigates investment managers, hedge funds and fund of funds. Also, participants will profit from the experiences and advice of due diligence professionals who will be delighted to share their expertise and answer their questions.

The program comprises three parts:

What to focus on during due diligence

Participants will be provided with sample descriptions of different funds (including fund of funds) and tasked to identify areas which warrant particular attention during the analysis.

What to pay attention to when reviewing the funds’ documents?

Participants will be provided with samples of audited financial statements, offering memoranda, and other documents for each a hedge fund and a fund of funds and the exercise will concentrate on identifying areas of concerns and inconsistencies while discussing how such issues could be addressed during due diligence.

How to put it all together during a manager visit

SwissAnalytics’ Head of Due Diligence will compile ideas and experiences of the participants while providing insight from his own experiences on how indications and impressions from part I & II can be used to schedule effective onsite due diligence meetings.

You may find additional information here. Please do not hesitate to contact us should you have questions or remarks regarding the event. We are looking forward to welcoming you at our event on September 27, 2011 in Zurich, Switzerland.

Does it really pay off to conduct due diligence, after all, it is costly and time consuming and what damages could I really avoid doing it?

The potential damages are often vastly underestimated. Our experiences show, that the consequences of issues identified can be quite dire and the damages incurred turn out to be exponentially higher than the expenses of conducting proper due diligence. In this white-paper, you may find a few selective examples of issues we have found and the corresponding damages which were incurred by the investors. Furthermore, we respond to sceptical voices that do not see the value of performing proper due diligence.

To download a copy of the white paper, please go to the White Paper section. 

ZURICH, Switzerland – In its continued quest to help investors improve their due diligence on investments SwissAnalytics opens common access to best practices in alternative investment due diligence by launching its due diligence software to the wider public. The software was specifically designed to cater to the needs of fund due diligence, allowing its users to analyze and track their funds while relying on a systematic solution which follows a state-of-the-art due diligence process and visualizes key risks.

The software provides a systematic approach enabling the comparability of the client’s research conducted on funds through a common risk framework. Furthermore, it is able to generate portfolio reports aggregating such research. User flexibility is an important feature as the software is capable of dealing with a multi-user environment. Moreover, the systematic and comparable analysis allows for potential peak-time work outsourcing to SwissAnalytics’ team of analysts. Thus, the client is provided with an enhanced capacity management option.

The software follows the state-of-the-art due diligence process of SwissAnalytics – including gathering and storing data and documents, in-depth analysis of the investment fund and manager, and independent verification of information with service providers. Moreover, the software also incorporates a quantitative engine which analyses historical data covering the most common risk and return measures and includes an extensive multi-factor analysis and Monte-Carlo simulation. As a successful due diligence process starts with asking the right questions, the necessary due diligence questionnaires, for the fund/manager as well as its most important counterparties, are available upon clients’ request.

The visualization of key issues using yellow and red flags and its standardized and comprehensive reports render the software an effective internal and external reporting tool.

The software is anticipated to be used by fund investors and allocators – ranging from funds of funds, family offices and banks to independent asset managers and pension funds. It facilitates the analysis of the entire range of alternative and traditional investment strategies, covering single funds, managed accounts, and funds of funds (including SICAV and UCITS structures).

About SwissAnalytics:

SwissAnalytics is an independent provider of investment due diligence. The firm’s services include hedge fund, traditional investment fund (including UCITS), operational, strategy and legal due diligence and advisory services. The company services banks, insurance companies, pension funds, funds of hedge funds, family offices as well as high-net-worth investors. SwissAnalytics is a privately held company based in Zurich, Switzerland. The company has been awarded a certificate (ISO 9001:2008) for the process quality of its due diligence operations.

SwissAnalytics can be contacted by phone (+41 44 296 90 60) or e-mail (info [at] swissanalytics [dot] com).

If you like to see a live demonstration or a more detailed description of the software, click here.

Geographically, the Swiss alternative investment market is positioned in the core of Europe. Legally, it is increasingly pressured into following European regulation, without always being invited to discuss its evolving requirements. Strategically, this unique situation poses both challenges and opportunities. In this paper we shall examine the composition of the Swiss alternative investment market, focusing on single manager hedge funds and funds of funds.
 
To download a copy of the white paper, please go to the White Paper section. 

Geographically, the Swiss alternative investment market is positioned in the core of Europe. Legally, it is increasingly pressured into following European regulation, without always being invited to discuss its evolving requirements. Strategically, this unique situation poses both challenges and opportunities. In this paper we shall examine the composition of the Swiss alternative investment market, focusing on single manager hedge funds and funds of funds.
 
To download a copy of the white paper, please go to the White Paper section. 

In this month’s white paper, we focus upon sophisticated UCITS funds, comparing their strengths and weaknesses to their offshore hedge fund peers. Some of the results are surprising, as we identify similarities and differences between UCITS and non-UCITS funds across the following categories:

·  Risk Management & Leverage
·  Portfolio Valuation
·  NAV Calculation
·  Fund Setup
·  Reporting and Transparency
·  And more!

To download a copy of the white paper, please go to the White Paper section. 

SwissAnalytics also advises clients in their disputes with fund managers. We can provide support in topics such as:

• Advising investors on liquidity problems/suspended dealings in offshore funds (single manager/FoHFs)
• Advice on shareholder rights, managers’ & directors’ duties, distressed funds, asset protection, winding up

 
Types of funds which we analyze:

• Onshore/Offshore Funds of Funds
• Onshore/Offshore Hedge Funds
• UCITS-Compliant Funds
• Private Equity Funds
• CTAs
• And More!

 
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