The Preqin All-Strategies Hedge Fund index shows April was the sixth straight month of gains, with only macrostrategies experiencing a decline. Emerging markets are leading the upturn, rising 6.6% this year and having record-high assets under management of $205.8 million, per Hedge Fund Research.
Korea Exchange will introduce a website next month that serves as a resource for short-selling information, with a beta version launching today. "Investors' attention to short-selling is high, but they have suffered limited access to short-selling-related information," according to the exchange.
The European Commission is scheduled June 7 to outline an action plan for a revised capital-markets union as the UK prepares for Brexit. Among expected changes is streamlined passporting for cross-border fund selling because "we can no longer count on liquidity pools in London," EU official Ugo Bassi says.
The possible ramifications of Brexit on UK investment managers would affect income from European retail and alternative investment funds, as well as segregated accounts, lawyer Peter Astleford writes. The time frame for Brexit negotiations likely is inadequate and could lead to a yearslong transition, he writes.
Austrian Finance Minister Hans Joerg Schelling says agreement on an EU-wide financial-transaction tax is closer to reality as countries increasingly commit to or review the levy. German Finance Minister Wolfgang Schaeuble, however, says he does not expect agreement soon.
The China Securities Regulatory Commission is looking at opening futures contracts for a wide range of commodities and raw materials in an effort to encourage more foreign trade and investment, with individual Chinese exchanges also making similar plans. The move is seen as part of China's long-term plan to be more influential in global price setting.
EU leaders will discuss their response to a statement from David Davis, the minister leading the UK's Brexit negotiations, that Britain may walk away from discussions if it deems the EU's demand for payment to leave the bloc excessive. Estimates of the Brexit bill range from €5 billion to €100 billion, with Davis saying that the UK would balk at even €1 billion and indicating that negotiations could be turbulent.
While the repeal or replacement of the Volcker rule could take years, the review ordered by Treasury Secretary Steven Mnuchin could lead regulators to better define the types of trading banned by the rule, giving banks more leeway to trade within its bounds. The Commodity Futures Trading Commission, the Federal Reserve, the Federal Deposit Insurance Corp., the Securities and Exchange Commission and the Office of the Comptroller of the Currency were tasked with reviewing the rule.
The United Nations-supported Principles for Responsible Investment has published a due diligence questionnaire for hedge funds to focus on responsible investments. The DDQ was produced by a working group that included AIMA. To facilitate use of this DDQ in a familiar style, AIMA has replicated the questions from the UN PRI DDQ into its usual questionnaire format. This questionnaire is available on AIMA's website for anyone who would like to use it to respond to investor requests or simply to begin thinking about what responsible investment might entail.
The Alternative Credit Council, the private credit affiliate of AIMA, in conjunction with the law firm Dechert, has launched its third annual survey. Managers of private credit funds can complete the survey. The findings will underpin our third annual "Financing the Economy" report. Previous reports in this well-received series are available online. The final paper will help inform the ACC's advocacy work with policymakers and borrowers about the benefits of private credit. For more information, contact Jordan Large at AIMA.