Archive for the ‘News’ Category

As we approach the holiday season it is a good time for some New Year’s resolutions. A very meaningful resolution would be to not only focus on performance but also about potential drags such as fees and expenses. As with all resolutions, however, simplifications and generalizations are rarely good advice. Assessing fees and expenses requires a differentiated approach and a fair amount of efforts.

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

Christian Nauer, Partner and CEO of SwissAnalytics, has been elected Chair of the all-volunteers Advocacy Committee by the Board of CFA Society Switzerland. The Advocacy Committee takes up issues of interest to the Swiss CFA community in all relevant domains of governance and regulation. The Committee positions are grounded in the Code of Ethics and Standards of Professional Conduct of CFA Institute.

Recently, hard assets such as real estate, commodities, projects in renewable energy, or luxury goods such as art or wine enjoyed great publicity and were praised as “real” alternatives to investments in securities luring with spectacular returns and quoting favorable characteristics such as inflation protection, sustainability, stable values, low volatility and high liquidity. Unfortunately, expectations could rarely be met and investors faced significant losses as some investments even turned out to be outright fraudulent. Is the accumulation of painful events in hard assets attributable to pure coincidence? The Swiss business publication BILANZ looked into this question and asked SwissAnalytics to comment on a selection of hard assets investments. The conclusion can be found in a recently published article (Issue# 12/2013).

You may find the article here. Though please note that the article was published in German only.

Subsequent to last fall’s white paper three regulatory complaints are reviewed and discussed in more detail pointing out structures and circumstances which were instrumental in facilitating the fraud. Furthermore, they illustrate boundaries of what can be expected from a regulatory agency suggesting that an investment advisor’s registration with a regulator is no substitute for proper, pro-active due diligence.

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

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.

July 19, 2011

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. 

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In the News

December 17, 2013
New White Paper: “Managing” Fees for Collective Investment Schemes

As we approach the holiday season it is a good time for some New Year’s resolutions. A very meaningful resolution would be to not only focus on performance but also about potential drags such as fees and expenses.

read more