Fund Industry Fund Administration and Audit 2024 PDF

Fund Industry Fund Administration and Audit Course facilitation – A Faverjon & G Blanchard Course design – M Lambert Fund Administration & Audit – Fund Industry, HEC Liège - 2024-2025 - M Lambert – A Faverjon – G Blanchard 1 ...

Fund Industry Fund Administration and Audit Course facilitation – A Faverjon & G Blanchard Course design – M Lambert Fund Administration & Audit – Fund Industry, HEC Liège - 2024-2025 - M Lambert – A Faverjon – G Blanchard 1  Asset Management industry Investors: retail (household, HNWI), institutionals (asset owners) Direct Indirect intermediation intermediation Third-party asset managers Market Private intermediaries/ contracts Brokers Companies, Governments, … Fund Administration & Audit – Fund Industry, HEC Liège - 2024-2025 - M Lambert – A Faverjon – G Blanchard 2  Asset Management industry Investors: retail (household, HNWI), institutionals (asset owners) Direct Indirect intermediation intermediation Third-party asset managers Market Private intermediaries/ contracts Brokers Companies, Governments, … Fund Administration & Audit – Fund Industry, HEC Liège - 2024-2025 - M Lambert – A Faverjon – G Blanchard 3  Investment funds and asset managers as key financial intermediaries Third-party asset managers play an important role in the capital markets Investment funds are entities that pool investors’ money and provide investors with professional investment services. A discretionary mandate to an asset manager is a specific investment ‘mandate’ delegated to an asset manager by a specific investor, tailor-made to that particular investors’ precise investment goals. Fund Administration & Audit – Fund Industry, HEC Liège - 2024-2025 - M Lambert – A Faverjon – G Blanchard 4  Professionally managed assets Value of assets under management worldwide (in trillion U.S. dollars) https://web-assets.bcg.com/ba/c8/5b65e9d643abac4fa8e6820e86f4/bcg-global-asset-management-2022-from- tailwinds-to-turbulence-may-2022-r.pdf Fund Administration & Audit – Fund Industry, HEC Liège - 2024-2025 - M Lambert – A Faverjon – G Blanchard 5  Professionally managed assets Largest asset managers worldwide (in billion euros) Source: statista.com Fund Administration & Audit – Fund Industry, HEC Liège - 2024-2025 - M Lambert – A Faverjon – G Blanchard 6  Professionally managed assets Value of assets under management worldwide Fund Administration & Audit – Fund Industry, HEC Liège - 2024-2025 - M Lambert – A Faverjon – G Blanchard 7  Focus on investment funds Investment funds are entities that pool investors’ money and provide investor with professional investment services. It sells shares to the public, invests the proceeds according to its investment objectives, and will either retain or distribute to its shareholders the net income and net gains. Different types of funds according to its structure, its investment strategy or its regulatory status Fund Administration & Audit – Fund Industry, HEC Liège - 2024-2025 - M Lambert – A Faverjon – G Blanchard 8  Focus on investment funds Different types of funds according to its structure, its investment strategy or its regulatory status Type of assets: Equity, fixed income, real estate, money market, private assets… Type of strategy: Passive versus active (core or specialties) versus alternatives Alternatives: hedge funds, leveraged buyout, venture capital, liquid alternatives, … Traditional: diversification, active/passive strategy Money market (short term) Fund Administration & Audit – Fund Industry, HEC Liège - 2024-2025 - M Lambert – A Faverjon – G Blanchard 9  Focus on investment funds Different types of funds according to its structure, its investment strategy or its regulatory status Open-end funds issue new fund shares (or units) and redeem existing shares (or units) on demand. Closed-end funds issue a fixed number of shares which are not redeemable from the fund. Exchange traded funds are index funds listed on an exchange: shares are redeemed or issued by authorized market participants Fund Administration & Audit – Fund Industry, HEC Liège - 2024-2025 - M Lambert – A Faverjon – G Blanchard 10  Focus on investment funds Different types of funds according to its structure, its investment strategy or its regulatory status Regulated Source: https://www.ici.org/pdf/2019_factbook.pdf In the US, regulated funds include mutual funds and exchange-traded funds (ETFs). In Europe, regulated funds include Undertakings for Collective Investment in Transferable Securities (UCITS)—ETFs, money market funds, and other categories of similarly regulated funds—and alternative investment funds, commonly known as AIFs. Non-regulated funds Fund Administration & Audit – Fund Industry, HEC Liège - 2024-2025 - M Lambert – A Faverjon – G Blanchard 11  Focus on investment funds Source: EFAMA International Statistical Release (Q1 2022) - https://www.efama.org/ Fund Administration & Audit – Fund Industry, HEC Liège - 2024-2025 - M Lambert – A Faverjon – G Blanchard 12  Focus on investment funds Source: EFAMA International Statistical Release (Q1 2022) - https://www.efama.org/ Fund Administration & Audit – Fund Industry, HEC Liège - 2024-2025 - M Lambert – A Faverjon – G Blanchard 13  Focus on investment funds Managed assets in investment funds worldwide (in trillion U.S. dollars) Source: EFAMA International Statistical Release (Q1 2022) - https://www.efama.org/ Fund Administration & Audit – Fund Industry, HEC Liège - 2024-2025 - M Lambert – A Faverjon – G Blanchard 14  Focus on investment funds Source: EFAMA International Statistical Release (Q1 2022) - Europe (Source: EFAMA, AM report 2021) https://www.efama.org/ Fund Administration & Audit – Fund Industry, HEC Liège - 2024-2025 - M Lambert – A Faverjon – G Blanchard 15  Course content Parties involved Fund Administration & Audit – Fund Industry, HEC Liège - 2024-2025 - M Lambert – A Faverjon – G Blanchard 16  Course content https://www.efama.org/sites/default/files/files/Asset%20Management%20Report%202021_5.pdf Fund Administration & Audit – Fund Industry, HEC Liège - 2024-2025 - M Lambert – A Faverjon – G Blanchard 17  Course outline Part I: Investment fund types (types of product) – Module 1: From MPT to investment funds – 20/9 – Module 2: Deviating from MPT – The case of alternative funds – 11/10 – Module 3: Legal structure and regulatory framework (legal classification) – 4/10 – Module 4: Sustainability and investment funds – 18/10 – Module 5 : Traditional and alternative investment funds (strategy classification) – 25/10 & 8/11 Fund Administration & Audit – Fund Industry, HEC Liège - 2024-2025 - M Lambert – A Faverjon – G Blanchard 18  Course outline Part II: Investment fund management – Module 6: Management company and alternative investment fund manager & Depositary services – 6/12 – Module 7: Fund administration and audit – 13/12 & 20/12 22/11 Due diligence case study Fund Administration & Audit – Fund Industry, HEC Liège - 2024-2025 - M Lambert – A Faverjon – G Blanchard 19  Guest speakers Fund manager Fund administrator Fund auditor Fund lawyer Fund depositary Insurer Consultant … Fund Administration & Audit – Fund Industry, HEC Liège - 2024-2025 - M Lambert – A Faverjon – G Blanchard 20  Evaluation 60% Written exam 20% (individual) continuous evaluation: in-class activities and homework 20% Group work (enrolment and practical details TBA) ! Course enrollment will be closed after October 31st as well as group enrollment ! Each student should be enrolled in a group by that date to be authorized to enroll into the course and/or to take the January exam. See retake exam rules online https://www.programmes.uliege.be/cocoon/20222023/en/cours/FINA0054-1.html or https://www.programmes.uliege.be/cocoon/ 20222023 /cours/FINA0079-1.html Fund Administration & Audit – Fund Industry, HEC Liège - 2024-2025 - M Lambert – A Faverjon – G Blanchard 21  Contact Professor Gilda Blanchard – [email protected] [email protected] Teaching assistant: Anouck Faverjon - [email protected] Fund Administration & Audit – Fund Industry, HEC Liège - 2024-2025 - M Lambert – A Faverjon – G Blanchard 22