Fund managers pose threat to global financial stability, says IMF

Fund management companies that invest billions of pounds of savers' money pose a threat to global financial stability and regulators should police them more closely, according to the International Monetary Fund, as delegating day-to-day investment decisions to large asset managers, as pension funds and many individual savers do, "introduces fundamental incentive problems between end investors and fund managers, which can induce destabilisingbehaviour and amplify shocks."

Cyber threats and how to counter them

Cyber threats are seen as real threats nowadays, so much so that President Obama on Wednesday signed an executive order aimed at retaliating against foreign-based online attacks on the United States. In the private sector, technology firms are already working on it...

According to Vinod Paul and Bob Guilbert from Eze Castle Integration, a global outsource IT service and cloud provider to the alternative investment space, smaller or emerging managers usually use the cloud to launch their product. Firms in general, Paul says, understand that the technology is secure for a private cloud and tend to adopt it.

Eze is seeing two factors for adoption, he continues, "one is the refresh cycles of hardware, software, as well as co-location facilities. And the second is when the fund is re-locating, they don't want to recreate large com rooms, have the base set for hosting their own technology, they have adopted the cloud technology, they understand that private cloud is the best for them, and they are coming to us to move their data as well as their systems to the cloud."

"It's a financial decision as well," Guilber......................

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This article was published in Opalesque's New Managers a top-down monthly analysis, news and research publication on the global emerging manager space.