December 2008
This edition of
European IMRE News contains articles that focus on topical issues, including:
- Valuation in times of volatility: How to cope with unprecedented volatility in an era of ‘fair value’ accounting? A consistent and thorough methodology is the answer.
- European Parliament ratchets up pressure on hedge funds and private equity: Market turmoil and the contents of two Parliament reports make regulation more likely, with proposals now probable in 2009.
- Differentiating private equity businesses in difficult markets: Private equity firms need to demonstrate how they are adapting to a series of key issues – how they are anticipating tomorrow’s world.
- Switzerland clarifies tax treatment for private equity managers: The tax authorities are clarifying the tax treatment of private equity managers in order to make
Switzerland a more attractive base for managers.
- Tax joins hedge funds’ operational risks: As tax risks for hedge funds mount, we believe that they have become a significant operational risk that should be monitored by fund boards.
- A quantum shift for HR: With the financial landscape dramatically changed, investment managers are likely to be asked some serious questions over current reward programmes and in some cases make far-reaching changes.
- Where next for sovereign wealth funds? : With a new code of conduct and shifting economic fortunes, sovereign wealth funds are making some changes to how and where they invest.
- Why size does not always bring economies of scale: While asset management should be a highly scalable business, in fact, it often is not. At a time when costs are under scrutiny, understanding which factors are blocking economies of scale is essential.
- Capital market utilities and stock exchanges as fund distributors: Emerging distribution models are likely to improve liquidity, price transparency, management of counterparty exposure and straight-through processing efficiency.
- Italy acts to remove a conflict of interest: At a time when assets under management are falling, Italy’s supervisory authorities believe one solution is to introduce a more open distribution system – which may ultimately benefit foreign asset managers.
- Switzerland eases UCITS distribution: Proposed revisions to the ‘Swiss Finish’ rules are making the country a far easier place for distributing UCITS funds.
- Transparency and comparability of real estate entities under IFRS progresses slowly: Our survey of 50 listed real estate entities’ 2007 financial statements shows greater transparency and comparability, but there remains some way to go.
- French SPPICAV becomes a real estate investment vehicle of choice: With SPPICAVs not subject to the anti-avoidance provisions established for SIIC structures, they are in vogue with French and foreign investors alike.
- IRS ruling on property index swaps creates opportunity: A new IRS ruling appears to open the door for European funds to gain tax-efficient access to US real estate through index-notional principal contracts.
- Challenges for family offices building in-house teams: As family offices and high-net-worth individuals increase their expertise in alternative investments, so they need to take a well-planned and focused approach.
