Fri, Apr 18, 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. 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

  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: Hedge fund replicators evolve[more]

    Bailey McCann, Opalesque New York: Hedge fund replicators as a group of products tend to get a bad rap from hedge fund managers who suggest that the best a replicator can offer is dynamic beta capture. A

  4. 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

  5. SEC allows investment funds to use social media[more]

    Bailey McCann, Opalesque New York: The Securities and Exchange Commission (SEC) has released new guidance letting investment funds and advisors use social media to promote client reviews. The guidance seeks to assist investment managers in developing compliance policies and procedures reasonably