Investment Managers to Face Trade-Oﬀ between Cost and Regulation
Tony Christien, Divisional Director, Hedge
The alternative asset management industry is becoming increasingly regulated, not only in Africa, but around the world, says Tony Christien, Divisional Director at SANNE.
Given the trend for increased regulation and oversight, asset managers now require eﬀective administration solutions whilst being cognisant of additional costs being passed on to investors.
Crafting Bespoke Solutions for Regulated & Unregulated Structures
The industry is experiencing a drive for more regulatory oversight, transparency in reporting, as well as independent valuations to ensure the protection of investors. Allied to this the generation of return is becoming increasingly more sophisticated, with multiasset class specialisms and complex products being the norm, rather than the exception. Experience in these spheres, as well as having a multi-jurisdictional presence is important when evaluating potential partners.
As an administrative service provider we assist clients with all administrative requirements - from bringing a product to market, the implementation, set-up and the execution phase, including regulatory oversight. Our solutions are designed in such a manner to ensure that we have an in-depth understanding, appropriate business knowledge and specialised skills to provide bespoke solutions.
When selecting an administration partner, it is essential to ensure that they are capable of administering structures despite the jurisdiction they operate in. Our administration services cover both Closed-ended and Open-ended structures.
Closed-ended structures for private debt, private equity and real estate funds are usually held in regulated structures, notwithstanding the products themselves being unregulated.
Open ended structures administered primarily consist of Hedge or Long only portfolios that can be either regulated or unregulated. Examples of regulated products would be for both open-ended and closed-ended portfolios.
We provide end-to-end fund accounting, investor services, cash management and financial statement preparation solutions. Other bespoke services are oﬀered
including regulatory reporting such as FATCA and CRS, Middle Office as well as a full range of Corporate and Secretarial Services.
From onshore to oﬀshore and the regulatory requirements
A benefit of a multi-jurisdictional service provider is the ability to provide clients with the option to utilise multi-jurisdictional vehicles. For international structures, clients have the opportunity to access a variety of jurisdictions. We are regulated under a number of jurisdictions and can administer Maltese, Cayman, BVI, South African and Mauritian open-ended entities, and closed-ended entities in the additional jurisdictions of Guernsey, Jersey, Ireland and Luxembourg.
Consequently, it is imperative to ensure that your provider utilises best of breed administration systems.
Changes in the Legislative Environment in South Africa
Recent legislative changes in South Africa have brought hedge funds under the ambit of the Collective Investment Schemes Act, which now governs how funds are set up and operated in South Africa. There are two types of schemes - Qualified Investor Hedge Funds and Retail Hedge Funds, catering for diﬀering segments of the market and oﬀering diﬀering risk profiles. An overarching theme in the regulated space is the formalisation of risk management structures and the requirement of the regulator to monitor systemic market risks.
In the regulated space, our Management Company provides a hosting solution for investment managers who want to manage portfolios in the regulated space but either do not wish to operate their own Management Company or do not have the operational capacity of doing so. At present, we host over 70 portfolios, in the Unit Trust, Retail and Qualified Hedge Fund Investor markets.
Seamless end-to-end administration
We have a tried and tested end-to-end administration system that integrates asset and liability administration seamlessly. This ensures that the whole valuation and reporting process is uninterrupted from beginning to completion.
Creating Holistic, Forward Looking Solutions since 1988
With over 1,000 clients, 5,000 structures and funds in excess of £160 billion, we assist leading alternative asset managers, financial institutions, family offices and corporate craft tailored solutions, specific to their unique needs and requirements. We do this by always taking a holistic, forward looking view, and together with our clients, we identify creative ways of achieving their business imperatives through our expert capabilities in administration, reporting and fiduciary services.
Our Global Footprint
We operate in 15 established international financial centres spread across the Americas, EMEA and Asia-Pacifc, and are listed on the LSE and a FTSE 250 constituent. Our global presence and director-led business enables us to work in partnership with our clients across key assets and jurisdictions, through one coordinated platform.