More than 50 percent of fund managers, prospective clients and consultants attending a recent Northern Trust (Nasdaq: NTRS) seminar on the European Unions Alternative Investment Fund Manager Directive (AIFMD) said they believed investors would still not be engaged in AIFMD considerations by December 2015.
These latest findings echo a previous survey conducted by Northern Trust in 2012 where a significant number of respondents had concerns over AIFMD, with close to 70 percent citing their investors were not engaged in AIFMD considerations at the time.
Next year is an important milestone in AIFMD deployment, said Ian Headon, of Northern Trust Depositary Services. The fact that managers still feel that investors, the intended beneficiaries of the Directive, will not be engaged in December 2015 comes as somewhat of a surprise.
The primary benefit of the AIFMD for asset managers is the creation of a pan-European passporting regime, making distribution easier. However, despite these distribution opportunities, two thirds (66 percent) of the attendees still saw the directive primarily as a compliance exercise, an increase on the 64 percent who felt the same a year ago. Less than 15 percent of attendees believe the directive is a strategically important opportunity for their business, and 62 percent of attendees reported that AIFMD will have no implication on their future product strategy.
Our findings show that the benefits of AIFMD are not yet translating into strategic opportunities and the focus for fund managers remains on the workload required to implement the Directive, said Toby Glaysher, head of Northern Trusts Global Fund Services business in Europe, Middle East and Africa (EMEA). At Northern Trust, we understand the increasing regulatory challenges our clients face and will continue to provide regular updates from our experts to help them navigate the changing regulatory landscape.
Northern Trusts Global Fund Services business provides custody, fund administration, investment operations outsourcing, and ETF solutions to investment managers across the globe and across the spectrum of asset classes. In 2013, it announced it was expanding its Depositary Services capabilities across multiple fund types, asset classes, fund locations and investment strategies. Northern Trust will now offer depositary services in the United Kingdom and The Netherlands, in addition to its established services in Ireland, Luxembourg and the Channel Islands.
About Northern Trust
Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of investment management, asset and fund administration, banking solutions and fiduciary services for corporations, institutions and affluent individuals worldwide. Northern Trust, a financial holding company based in Chicago, has offices in 18 U.S. states and 18 international locations in North America, Europe, the Middle East and the Asia-Pacific region. As of December 31, 2013, Northern Trust had assets under custody of US$5.6 trillion, and assets under investment management of US$884.5 billion. For more than 120 years, Northern Trust has earned distinction as an industry leader in combining exceptional service and expertise with innovative products and technology. For more information, visit www.northerntrust.com or follow us on Twitter @NorthernTrust.
Northern Trust Corporation, Head Office: 50 South La Salle Street, Chicago, Illinois 60603 U.S.A., incorporated with limited liability in the U.S. Global legal and regulatory information can be found at http://www.northerntrust.com/disclosures