1. 2 managed futures industry trends enhanced investor control via managed accounts investors...
TRANSCRIPT
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Managed Futures Industry Trends
Enhanced investor control via Managed Accounts
Investors moving capital from traditional Fund of Hedge Funds and into managed accounts or managed account platforms
Increased liquidity terms within funds – move from quarterly/monthly to semi-monthly/weekly/on demand
Daily/Monthly portfolio transparency reporting to fund investors
Independent daily reconciliation & 3rd party valuation
Multiple FCM’s
Multi-Tiered fees & additional investor level fees beyond management & performance
Enhanced investor due diligence including on-site visits
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Managed Account Platform
Large investors pushing managed account platforms towards their operational mandates:
Service providers: FCM Auditor Administrator Bank
Compliance/Controls/Etc: Independent Reconciliation/Valuation Cash Controls Liquidity terms Fee terms Reporting requirements Risk Management
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Enhanced Reporting
Aggregation of portfolio data for investors and managers/sponsors
Across investor’s managed accounts
Across investor’s pro-rata portion of Fund/MAP investments***Fund/MAP may invest in many CTA’s via managed accounts
Segmentation, sorting & subtotaling of portfolio data for analysis:
Strategy, CTA, FCM, Investment type, Currency, etc…
Daily Investor NAV estimates by CTA & consolidated across CTA’s
Daily ROR – CTA, across CTA’s, Class, Investor
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Daily P&L Report - Master Fund
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Daily P&L Report - Master Fund(Feeder Transparency)
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Daily P&L Report - Master Fund (Feeder Transparency with Investor Segmentation)
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Daily P&L Report - Master Fund(Investor Transparency – Tom McGregor)
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Investor Transparency – Tom McGregorInvestment Type / FCM
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Investor Transparency – Tom McGregorSector (Agriculture) / Investment
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Tom McGregorDaily & MTD Investor Statement (Net of Fees)
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NFA Rule 2-46
CPO Quarterly Reporting Requirements – How can your administrator help? Most reporting requirements should be part of your
administrators standard reporting package Calculate NAV Calculate R.O.R. Prepare the Schedule of Investments
Schedule of Investments Administrator tracking of all trade activity allows for roll-up of
data
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Daily Reconciliation
Administrator receives trades directly from each CTA
Administrator receives nightly feeds from each FCM
Administrator receives pricing directly from third party sources
T -> Flash reports - Positions and P&L
T+1-> Reconciled reports – Positions and P&L Positions
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Summary
Trend Toward Managed Account Structures
Increased Investor Control / Due Diligence
Increased Frequency of Liquidity
Enhanced Investor Reporting - Frequency & Transparency
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Spectrum Global Fund Administration
Full Service Daily – Oriented Fund Administration
US & Cayman – Funds, Managed Accounts, FoF’s
Flexible Technology To Handle Multiple Structures, Products, Complex Fees
45% Of Business Is CTA Related
75% Is Daily Reconciliation & Reporting Oriented
Daily Transparency Reporting, NAV Estimate’s And Returns
Integrated and Flexible Internal System - VBO
Facilitate on-demand Liquidity
Facilitate Independent Valuation
SAS 70