Sat, Oct 25, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Delegates discuss the impact of IFRS and Solvency II on hedge funds

Thursday, October 24, 2013

amb
Karl Trollborg
Beverly Chandler, Opalesque London:

The Opalesque 2013 Nordic Roundtable, sponsored by Estlander & Partners, Eurex and Taussig Capital saw delegates discussing IFRS and Solvency II and their likely impact on hedge funds.

Karl Trollborg of Wassum said: "I see two clear forces that stand out at the moment driving institutional investor behavior. One is Solvency II and the other IFRS. Both push some of our clients into more absolute return type of investments from equities or any other volatile investment. I don’t know the details of Solvency II, but one aspect of those pension regulations is to try getting less volatile returns and match it with their liabilities. According to IFRS, pension trust assets should be valued marked-to-market. That means the pension schemes' volatility is documented in each quarterly report, they basically get it into the quarterly profit and loss statement, which the corporates don’t like. And their banks seem not to like it either. So, it’s an issue for them. I mean, it’s a fluctuation that’s only on paper really, but it’s an issue anyway."

Trollborg felt that the phenomenon pushes them to look for more absolute return type investments. "So one sec......................

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. Commodities - Oil wreaking havoc on small-cap energy stocks sliding 36%[more]

    From Bloomberg.com: Owning almost anything in the U.S. stock market has been a losing proposition since September. Owning smaller energy companies has been a catastrophe. Hercules Offshore Inc. and Resolute Energy Corp. are among 19 oil-and-gas equities in the Russell 2000 Index that lost more than

  2. Investing - Hedge funds favor equity long/short, Strategic bond managers hedge against further high yield sell-off[more]

    Hedge funds favor equity long/short From Securitieslendingtimes.com: Equity long/short strategies will generate good returns for hedge funds in the future, according to a panel at this year’s Risk Management Association Conference on Securities Lending in Naples, Florida. Panellists Sand

  3. Legal - Ex-hedge fund analyst weeps as judge hands down 5 year sentence, Former Columbus investment manager Steven P. Moore indicted on theft charges, SEBI confirms ban for Hong Kong hedge fund, SEC announces enforcement action against compliance officer[more]

    Ex-hedge fund analyst weeps as judge hands down 5 year sentence From Hereisthecity.com: An ex-hedge fund analyst was sentenced to 5 years in prison for his role in insider-trading scheme. The New York Post reports that former hedge fund analyst Matthew Teeple was sentenced Thursday to fiv

  4. Goldman in talks to acquire IndexIQ[more]

    From Bloomberg.com: Can Goldman Sachs put ETF investors on a liquid diet? Goldman is in talks to acquire IndexIQ, Reuters has reported. Index IQ is a small exchange-traded-fund firm known mostly for products that replicate hedge fund strategies, called "liquid alternative" ETFs. While IndexIQ has 11

  5. Other Voices: CALPERS dilemma should be a warning to hedge funds wanting institutional investors[more]

    From Ian Hamilton, founder of IDS Group. A quick comment on the CALPERS’ disinvestment from the hedge fund market and the jitters it is causing. Pension Funds should not be sheep and follow CALPERS’ decision as the issues that CALPERS has with hedge fund investments are in many ways unique t