Achieving operational efficiencies while meeting increased investor demands: Brasil Investment Summit
• Mechanisms to meet new investor demands for transparency, corporate governance and liquidity
• Adhering to international regulatory standards – what do fund managers need to be aware of?
• The domestic versus offshore debate – should funds stay or should they go?
• What differentiates offshore from domestic hedge funds?
• Understanding liquidity, NAV, taxation, and accreditation considerations
Regarding transparency there have been mentioned a few notes; full position disclosure would be unlikely, although often requested by prospective investors. Also enhanced reporting mechanisms are in demand. In addition the disclosure regarding fees and terms of payment to investment manager and other service providers is being enhanced and expanded.
Regarding corporate governance, concerns about qualifications of directors and their commitment to the role are rising. Also ethical issues are in the spotlight – Inside-trading is always in the press. Communication with investors is an increasingly critical component of successful corporate. It is making the investor feel how you are running your business.
Regarding the regulation of hedge funds – change is here, but it is not a dramatically change.
Considerations for selecting location were mentioned; the choice of jurisdiction is influenced by substance:
- Location of principal markets and clients
- Ease and access
- Progressive & permissive work permit regime
- Attractive and appropriate licensing requirements
- Availability of qualified staff & personnel
- Up to date technology (bandwidth, telecom, etc.)
- Professional expertise: legal, accounting, tech support.
By Maurice Eggen, Brasil Investment Summit