The first day will focus mainly on the process of idea generation and operational structuring of new investment products.
09.00 - 09.15 Welcome and Introduction
09.15 - 10.00 The process of Idea
In this chapter we will talk about methodology for idea
generation in Asset Management. While a bottom-up approach is the
main approach used (sales or client feedback, market watch etc.),
a top-down approach may sometime provide a competitive advantage
for product managers. For this, he/she will need to identify
global economic and regulatory trends (emergence of a new sector,
change of policies, new regulation impacting some clients etc.)
that may impact your clients. The objective is to anticipate their
future needs and offer customised and tailored solution.
Different practical case will be provided using my personal
experience as Fund Structurer such as (1) Multi-Asset Income Fund
or Auto-Call payoff in formula fund or High Yield ETFs for retail
clients in a context of a low yield environment and (2) providing
more transparency on Hedge Funds to Insurance Companies in a
context of Solvency II implementation.
10.15 - 13.00 Underlying, Payoff and
The second phase of product development is the actual economic
structuring of the project. Three aspects must be taken into
One is the underlying, or the asset class that will
ultimately deliver the performance of the product.
Second is the payoff. The idea is to use specific financial
instruments or management technics to modify the risk profile of
an underlying to match in more details the needs of the client.
We will study how the use of options and insurance portfolio
technics can achieve this objective.
Different study case and Excel exercise will be done to see
how these technics can modify the economic profile of a product.
13.00 - 14.00 Lunch
14.00 - 17.00 Fund Set-up, Fund
Administration & Maintenance, Distribution and Service Providers
Approval process and pass-porting will be detailed in this
section. UCITS directive and AIFM directive propose the
possibility to passport funds in Europe. This process will be
developed. During the life of a Fund, terms and condition may
change which lead to an amendment of the prospectus and other key
materials. This process is submitted to specific rules and
condition that will be detailed.
A mapping of all the different service providers will be
developed with a specific focus on the administrator in charge of
the NAV calculation and the accounting of investment funds, the
transfer agent in charge of the reception, centralisation,
aggregations of subscription-redemption and the holding of
registers, and the distributor in charge of dealing with the end-client
directly. In this respect, liquidity and subscription / redemption
schedule need careful attention to ensure equal treatment of unit-holders.
They will depend on the liquidity of the underlying but also on
the operational organisation of all different service providers.
We will also focus on some operational aspects that need
careful attention such as Fees (we will here develop the different
type of fees and their calculation methods (ongoing fees, up-front
fees, performance fees etc.), the structure of class of shares,
structure of sub-funds within Umbrella structures, master-feeder