Fri, Apr 18, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Law firm advises on likely impact for fund managers of a country leaving the Eurozone

Friday, June 15, 2012

Beverly Chandler, Opalesque London: Partners at law firm Dechert have addressed the issue of how a Eurozone event such as the exit of a country from the Eurozone would affect investment managers. As the news grows increasingly gloomy on the likely continuation of the Eurozone in its current state, Dechert urges fund managers to anticipate the impact of such an exit and to plan the steps they would need to take in response to such a development. "Managing this risk includes short and medium term steps to reduce risk or exposure, as well as the action that would need to be taken on the occurrence of an actual Eurozone event" the firm says.

Potential issues and oversight actions that should be considered by the management and boards of US and non-US funds include:

  • What are likely to be the key issues from the Euro Crisis that could impact U.S. Registered Funds, UCITs and QIFs/SIFs; in particular, what boards should consider, analysis of fund documentation, risk management, portfolio and share class exposure, investment management agreements, service provider and counterparty agreements, custody arrangements and liquidity and valuation;
  • What are the ways that fund managers can be proactive to prepare to deal with the Euro Crisis;
  • Applying the lessons learned from the 2007-2008 financial crisis to the issues arising from the Euro Crisis;
Risks relating specifically to currency redenomination include market closures; mandatory bank holidays; restricti......................

To view our full article Click here

Banner
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing
  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. CTAs could face new challenges in a rising rates environment[more]

    Bailey McCann, Opalesque New York: CTAs have taken a beating performance wise lately, and asset flows reports show that investors aren't sticking around to see how the movie ends. Now, a new white paper from Roy Niederhoffer and Coen Weddepohl notes that as interest rates start to tick back u

  2. Investing – Big hedge funds bought Puerto Rico's junk bonds, Fidelity explores new trading venue amid flash trade concerns, Crisis-era Greek bonds reward early buyers with big effective returns, Cargill unit discloses stake in Freddie preferred[more]

    Big hedge funds bought Puerto Rico's junk bonds From Reuters.com: Several large hedge funds doubled down on Puerto Rico in last month's giant bond sale despite the U.S. territory's financial struggles, the Wall Street Journal reported, citing confidential documents reviewed by the newspa

  3. Opalesque Exclusive: Classic Auto Funds Limited (CAF) launches several car investing funds[more]

    Bailey McCann, Opalesque New York: A new trend in alternative alternatives is emerging - car appreciation funds. Classic Auto Funds Limited (CAF) is the first to market with several funds that make super elite luxury cars into real asset investments. As a result of growing overseas demand couple

  4. Commodities – Popular value fund manager David Iben bets on Russia, gold,[more]

    From Reuters.com: With large bets on Russia and North American gold miners, one of the best performing stock pickers in the wake of the 2008 financial crisis is back with a new fund that reflects his deep aversion to following the crowd. In the Kopernik Global All-Cap Fund, David Iben is follo

  5. Opalesque Exclusive: Pensions, endowments, family offices reconsider life settlement investments[more]

    Bailey McCann, Opalesque New York: Hedge funds were once the largest investors in the life settlement industry, now the industry is seeing more interest from pensions, endowments and family offices directly. Life settlements have always been considered a niche part of the investing landscape, an