Money managers under the microscope
Reuters reporters head for the engine room
Reuters will be holding a European funds summit in Luxembourg this week, piggy-backing on the ALFI spring conference. It’s a useful opportunity to take stock of a startling couple of years for the industry, as well as looking ahead to the shape of the sector for the years to come.
We’ll be speaking to a host of senior industry players from both sides of the fence, from the top performing fund managers to the people that make the industry tick; Luxembourg got a jump on the rest of the fund market by being the first to leap on the UCITS train back in 1988 and now houses much of the sector’s administrative machinery as it becomes truly cross-border.
There will be a focus on trust, and we’ll be trying to get to the bottom of fund firm plans to win back clients who were burned during the credit crisis while keeping their fees and margins as intact as possible. Luxembourg was also the venue for the latest attempt by investors to gain restitution after losing money in Bernard Madoff’s Ponzi scheme, and the summit gives us a chance to press regulators on what they will do offer protection to those caught in future scams.
There’s also an intriguing debate to be had over the future of the UCITS fund model itself. Hedge funds are helping to raise some eyebrows as they move to bring their products to the retail market (and charge more to do it), and some in the fund industry are calling for a twin-track regulatory structure which offers retail investors a guaranteed venue where their innocent eyes are shielded from the bright lights of shorting and derivatives allowed by UCITS’ latest incarnations.
Watch this space for live blogging as the summit kicks off.