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Conference Day One - Tuesday 23 September 2008
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8.30am | Registration and refreshments
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8.50am | Chairman’s opening remarks
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| 130/30 FUNDS: SUCCESS OR FAILURE SO FAR? |
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9am | Examining if 130/30 funds have really taken off in Europe
- Has the hype around 130/30 funds become a reality in Europe?
- Uncovering how much investment has been placed in 130/30 funds
- Examining how much investment is coming from institutional as compared with retail?
- Why have European investors been slower than American investors to adopt this strategy?
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| | Mr John Donohoe, Chief Executive Officer, Carne Global Financial Servies Ltd
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9.30am | Panel discussion: examining the investor’s perspective: how do investors view 130/30 funds?
- Where do investors see 130/30 funds fit within their investment portfolio?
- What do 130/30 providers need to demonstrate for investors to allocate funds from their traditional allocation?
- How do retail investors needs differ to institutional investors?
- How do investors assess whether the benchmarks are efficient?
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10.10am | Consultant’s panel: how are 130/30 funds viewed now?
- How should 130/30s be viewed: are they an extension of long-only strategies or should they be viewed as an alternative investment?
- Is ‘hedge fund lite’ a misleading definition?
- Has the lack of clarity over their position within the investment categories helped or hindered 130/30 funds in appealing to investors?
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10.50am | Morning refreshments and networking
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11.20am | Examining whether 130/30 is really the most efficient model for risk and return
- What are the advantages and disadvantages of raising the leverage?
- Will shorting a number greater than 30 lead to supply problems?
- How do you balance risk and return within your 130/30 fund?
- Examining how the choice of benchmark affects the long/short ratio
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| | Mr Rob Weigand, Professor of Finance and Brenneman Professor of Business Strategy, Washburn University School of Business
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| SELECTING YOUR 130/30 MANAGER: THE CRUCIAL QUESTIONS |
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11.50am | Research findings: examining 130/30 manager’s performance over the past few years and the issues investors need to consider before selecting
- How can managers show they are adding value?
- Comparing the portfolio characteristics of 130/30 funds with long-only funds
- How do 130/30 funds perform compared to long-only
- Analyzing the questions you need to ask when the selecting a 130/30 manager
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12.20pm | Networking lunch
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1.40pm | Can 130/30 funds use the SNP Benchmark index to become more efficient?
- Outlining how this approach would work
- Taking alpha and putting it into beta
- Does this approach reclassify alpha?
- Will this unfairly raise the bar for money managers that live by their alpha
- How will trustees be able to tell that they are paying for alpha in the future and not hidden beta?
- How does this link into the hedge fund replication debate?
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2.10pm | Panel debate: assessing the impact of the credit crunch on the quant vs fundamental debate
- Can quantitative approaches cope during severe volatility?
- Have quantitative funds recovered from the credit crunch in 2007?
- Are fundamental managers suited to 130/30 strategies?
- Do they add value through shorting?
- Can they effectively short illiquid stocks?
- What are the underlying alpha sources?
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2.50pm | SPEED NETWORKING
 A Terrapinn innovation. This is the exciting, quick and non-pressurised way to meet fellow conference delegates and industry peers in one 50 minute session, where long-lasting and profitable business relationships begin.
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3.40pm | Afternoon refreshments and networking
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| CAN 130/30 FUNDS WORK BEYOND EQUITIES? |
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4pm | Applying 130/30 strategies to fixed income
- How fixed income is different: economic v. accounting risk?
- Leveraging: practical problems in measurement – does shorting always add risk?
- Do international portfolios and currency add an extra dimension?
- How to clarify your objective with your manager and monitor the rules
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4.30pm | Does it make sense to have fixed income as a 130/30 strategy?
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4.45pm | Panel debate: is there a future for specialized 130/30 asset classes?
- Outlining the pros and cons of restricting funds to one asset class?
- Are 130/30 funds just a new style of leveraging long-only products?
- Is it too early to look beyond equities?
- How suited are 130/30 funds to the following assets classes:
- real estate
- agriculture
- commodities
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| | Mr Rob Weigand, Professor of Finance and Brenneman Professor of Business Strategy, Washburn University School of Business
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5.25pm | Chairperson’s closing remarks
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5.30pm | Networking drinks reception
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Conference Day Two - Wednesday 24 September 2008
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8.50am | Chairperson’s opening remarks
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| ASSESSING THE IMPACT OF 130/30 FUNDS ON THE ESTABLISHED ROLES WITHIN THE INVESTMENT COMMUNITY |
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9am | Examining the ramifications of the convergence between traditional and alternative investments
- How will the arrival of 130/30 funds affect the roles that the following groups take in implementing funds: prime brokers, custodians, hedge funds and asset managers
- Examining the affect of 130/30 funds on the merger and acquisition market
- Will this create greater product innovation?
- Who will be the winners and losers if 130/30 funds keep growing?
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| | Mr Gary Palmer, Chief Exectuive Officer, Irish Funds Industry Administration
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9.30am | Panel debate: prime brokers vs custodians
- Is it a misnomer to talk about prime brokers and custodians in competition?
- Does it favour hedge fund managers that they have existing relationships with prime brokers?
- How will this affect smaller long-only firms wanting to set up 130/30 products?
- How much of the implementation can custodians take on?
- Will custodians ever be able to develop the skills necessary to become a principal intermediary?
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10.10am | Assessing the impact of increased quantity of shorting on the securities lending business?
- Examining how securities will be allocated once prime brokers and custodians begin to challenge each other in this area
- How will the lack of information on shorting affect the situation?
- What happens when shorting is in short supply?
- How can greater transparency be achieved?
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| | Mark Faulkner, Managing Director and Co-Founder, Spitalfields Advisors
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10.40am | Morning refreshments and networking
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| IMPLEMENTING 130/30 FUNDS |
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11.10am | Examining whether fund managers are really aware of the complex operational requirements that derivatives place upon managers?
- Examining if managers have the appetite for the large expenditure needed to implement the required operations
- When do you decide outsourcing is the only option?
- How do you incorporate outsourcing alongside your other operations?
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11.40am | Uncovering the implementation issues for 130/30 funds: lessons of successful launches
- UCITS III considerations & the changing regulatory landscape
- Examining the different product options and their implications on your implementation
- What are the pitfalls to avoid?
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12.10pm | Networking lunch
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| HOW CAN 130/30 FUNDS OPERATE EFFECTIVELY UNDER UCITS III? |
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1.40pm | Examining the Regulator’s perspective: what do potential funds need to know?
- Assessing whether funds have extended their risk management process
- What infrastructure are Regulator’s looking for?
- Why do the Irish Regulator support physical shorting under UCITS III?
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| | Mr Grellan O'Kelly, Derivatives & Risk Management Policy, Irish Financial Services Regulatory Authority
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1.55pm | Panel discussion: will 130/30 funds will be able to physically short under UCITS III and what impact would this have on the industry?
- Are the Irish Regulators views that you can physically short under UCITS III in line with CESR’s rulings?
- Should the rest of Europe follow Ireland’s lead or should the Irish regulator take a more conservative stance instead?
- Does it really make a difference to be able to physically short when synthetic derivatives are allowed to set up 130/30 funds under UCITS III?
- Would it be simpler?
- Would it be more cost-effective?
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| | Mr John Hamrock, Regualtory Compliance & Cross Border Distribution, Kinetic Partners Mr Grellan O'Kelly, Derivatives & Risk Management Policy, Irish Financial Services Regulatory Authority
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2.35pm | What are the considerations that need to be taken when establishing a 130/30 fund?
- Where should it be domiciled: Dublin or Luxembourg?
- How do I appoint an independent director for the board?
- What needs to be done in good governance?
- risk management, derivatives, shorting
- Addressing counterparty protection while staying within UCITS III
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3.05pm | Examining the new “130/30” ETF
- Assessing whether this strategy captures additional alpha
- How will it generate excess returns while retaining a 100% net exposure to the market?
- Will it be a more cost-effective approach?
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3.35pm | Chairperson’s closing remarks
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3.45pm | End of conference
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Pre-conference workshop - Monday 22 September 2008
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| Implementation issues for 130/30 funds structured as UCITS |
Rationale and Benefits
UCITS are the most widely distributed mutual fund type across Europe, the Far East and South America. 130/30 funds can be structured as UCITS subject to meeting certain regulatory, investment and risk conditions. These conditions are not onerous but they may be new to some fund managers / promoters who have not previously launched UCITS products. The workshop will provide an overview on these issues.
This workshop will be suitable for fund sponsors / managers as well as administrators, trustees and legal advisors.
The discussion will utilise Carne’s expertise from establishing UCITS funds in Ireland and Luxembourg.
Workshop agenda:
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9am | Overview of the funds and parties involved
- Different legal structures
- Parties to the fund
- Roles and responsibilities parties involved
- Role of regulator
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9.30am | Overview of process for establishing a UCITS
- Promoter approval
- Appointment of various parties
- Management company versus self managed fund
- Legal documentation
- Business plan / Substance application
- Risk management process
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10.15am | Morning refreshments and networking
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10.45am | 10.45 Eligible assets in UCITS funds
- What’s allowed
- What’s not allowed
- Use of derivatives
- Shorting
- Common strategies in UCITS funds
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11.30am | Risk spreading rules
- Unlisted securities
- 5/10/40 rules
- Control rules
- Borrowing and other limits
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12pm | Risk management process
- Sophisticated v non-sophisticated funds
- Use of Value at Risk
- Global exposure / leverage
- Position exposure
- Counterparty exposure
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12.45pm | End of workshop
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