Latest Research from KPMG and AIMA Describes How Hedge Funds are Improving the IR Model in 2020

Latest Research from KPMG and AIMA Describes How Hedge Funds are Improving the IR Model in 2020

IR1080-1024x597 Latest Research from KPMG and AIMA Describes How Hedge Funds are Improving the IR Model in 2020

BlogKMC-copy Latest Research from KPMG and AIMA Describes How Hedge Funds are Improving the IR Model in 2020

New research from KPMG International and the Alternative Investment Management Association (AIMA) shows that hedge funds are developing operations to become more robust, dynamic, and productive as they continue through the COVID-19 pandemic challenge. The report is conducted in real-time throughout the pandemic and surveys 144 hedge fund managers globally, representing an estimated $840 billion in assets under management (AUM). One of the key findings of this reports relates to the efforts of the majority of the surveyed funds to improve their Investor Relations (IR) function.

The importance of being face-to-face with clients and prospects cannot be overemphasised. During COVID-19 restrictions face-to-face meetings are near impossible and this has led to 58 percent of hedge fund managers taking steps to improve IR digital tools. Virtual meetings have increased in frequency and the expanded communications have helped to strengthen relationships between investors and managers. It has enabled the CEO and CIO to interact more regularly with many more investors. Going “virtual” has in many ways levelled the playing field, in the past small to medium sized funds struggled to persuade investors to travel to events, conferences, and in-person meetings. Now, investors are more open and flexible to such communication. If there is no means to satisfy the need for “in-person” due diligence, most investors would undoubtedly stay with those they already know and this of course favours the larger, more established actors in the market.

Screen-Shot-2020-09-14-at-15.44.45 Latest Research from KPMG and AIMA Describes How Hedge Funds are Improving the IR Model in 2020

“Ultimately, hedge funds will find the right balance of a more decentralized environment with the necessary face to face interaction in the office.” said Joseph Fisher, Senior Partner, Asset Management, KPMG in the US.

However, the absence of in-person meetings has required many managers to reconsider and restructure the way they manage investor due diligence and reporting. Bespoke reporting and services are being utilised and one-in-five say they are working to improve the transparency and risk reporting of their underlying funds. Operational due diligence meetings are happening via extensive video conferences. The decentralized workplace has brought with it new intricacies but the IR function broadly speaking is adapting and becoming greatly enhanced as a result.

“The hedge fund industry has been innovative, agile, and resilient through the pandemic, and our survey bears this out,” said Andrew Weir, Global Head of Asset Management, KPMG International. “They are evaluating their existing operating model and adjusting their core processes, cost structures and work environments so they are positioned to grow and meet the changing needs of investors.”

The report reveals a high level of satisfaction with GP communications, greater transparency and control during this difficult COVID-19 pandemic period. Due to this overt satisfaction we expect to see more bespoke client services offered by fund managers to their investors.

The COVID-19 challenge has demonstrated that hedge fund managers operations’ and services are resilient and dynamic. If anything positive is to come from this period of great disruption it will certainly be the advancement of IR within the investment industry.

Investing in the area of investor relations has shown to not only to forge existing relationships but also help create new business through referrals. As such, first class communication with clients is now seen as competitive advantage for those looking to differentiate and become best in class across all functions. Finscoms has ample experience in the IR sphere and are best placed to help enhance any existing IR model.

Ken Carmody

Chief Operating Officer

Mkt@finscoms.com  

+353 1202 4444

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Phase 1 – Tell your story to create interest

Phase 1 – Tell your story to create interest

Speaker-1024x874 Phase 1 - Tell your story to create interest

ES-Picture-298x300 Phase 1 - Tell your story to create interest

Part 1 of 2 in a series looking at the Capital Raising struggle. Look out for part 2 – Extend Your Reach

In my research through pages and pages of a search engine, it revealed little or no information on the vast numbers of projects/funds looking at funding, compared to the numbers of projects/funds that succeed. What was apparent to me was the mind boggling numbers looking at funding and the limited few that were funded. The route to the funder is not only heavily congested but one full of failure, loss of time, money and effort. This article, writes Edward Simpson, looks at the importance therefore of your narrative to create interest in you.

If we take a moment to look at this from the funder’s perspective they are inundated with funds, project’s, entrepreneur’s and so forth all armed with let’s face it poorly written prospectuses, I have seen fintech funds going to market and they don’t even have a website. Funders in the case of a number of private equity managers I know now adopt AI, one such private equity manager received approx. 3000 prospectuses in a year, AI selected 3 that matched investment strategy, the human got involved and all 3 were declined. A funder on average invests in fewer than 0.3% in a given year those seeking investment would see this as low whereas the funder might see this as perhaps too high.

How then can we ensure your project/fund is noticed? What is the alternative, how does a project/fund generate interest in its route to funding? Filling up email inboxes leads to negative branding, connecting your story with interested funder’s who are searching right now for opportunity is what Finscoms does.

We have now identified the problem – list of applicants high, funder’s time is short.

Solution – an improvement/investment into communications to tell your story will generate interest.

I believe there to be a stunning lack of communication and communications skills in the route to the funder, this may well be the number one barrier achieving funding or at the least one of the major components to a lack of funding/interest?

“The most powerful person in the world is the storyteller. The storyteller sets the vision, values and agenda of an entire generation that is to come.”  – Steve Jobs

What creates interest? Too many are overfamiliar with their project/fund, leaving the reader to ask ‘what is this about’. Easy to mention financials, the solution to the problem, is your story needs to encourage a funder to read further into your document not to give them reasons to say no.

Below is what a funder is looking for, this is based on feedback from the funder and differs from what the project/fund thinks the funder wants to see:

  • Your team – Who are you and why are you suited/your expertise to lead this project/fund? Avoid the ‘I am an entrepreneur with loads of experience but no success’
  • Product or Service – What exactly does your project/fund do exactly? Avoid a generic description and too much technical information. What specific results are/can be achieved? What is your solution to a problem?
  • Market Demand – What is the potential for your project? What are your USPs? Why would anyone care about your project/fund? Avoid ‘everyone will need this’ or ‘its the next Google’
  • Market Sector – Describe the market sector. Give examples of how your project/fund adds to its sector, is it sustainable? Does it have green credentials, show the value adds.
  • Competition – Who else is in your sector, what is the competition – give examples. What are your differentiators?
  • Financials – Include the amounts you are seeking for funding, what type of funding be it equity/debt/hybrid, what are your plans with the funding?

Effective communication means telling your audience a story funder’s understand, that captivates them and that makes them want to come back for the next chapter. Create hook’s with the above to create interest yes, but to also open up dialogue leading to a discovery call. Digital Marketing today allows for and creates inbound enquiries. Given recent lockdowns, funders are researching projects/funds, if the story is good they will make contact, you’ve now bypassed the high failure rate of projects/funds and their congested route to the funder.

Is it all about effective communications absolutely not, to tell your story in the first place you need a foundation a brand, create that all important first impression. A wise and small investment on your marketing materials, your projects/fund is well placed to tell the story, this small investment in your foundation is an asset that you own, shows a funder that you are understanding of the traditional and digital world’s with high returns on investment, telling your story is made all the easier to create.

If all this is too much, or you don’t have the time nor skills then Finscoms can help.

Whether you are just starting out or an established project/fund we can help. Why not send us your project/fund to mkt@finscoms.com we will reply with where we can help or not, improve the visuals, the telling of your story, to what audience, there is no cost to do this you have nothing to lose.

Finscoms are a full services marketing and communication’s company, we do not sell product nor do we give investment advice. With our expertise we do help you in your route to funding, we have a network of funder’s whom we could introduce you to.

Edward Simpson

Founder and Co Managing Partner

Mkt@finscoms.com  

+353 1202 4444

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Connect with Edward on Linkedin

 

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In the post-Coronavirus economy, where are the smart investments?

In the post-Coronavirus economy, where are the smart investments?

Ben1080-1024x668 In the post-Coronavirus economy, where are the smart investments?

colour544x544-300x300 In the post-Coronavirus economy, where are the smart investments?

The covid19 crisis has turned into a major economic crisis. However, some positive evolutions have been noticed in the last weeks and we can now see light ahead at the end of the tunnel even if the tunnel is still quite long. 

At Finscoms, we are positioned between investor and investee acting for both and as such we have our ear to the ground. This gives us a unique opportunity to share with you what we are currently hearing from our extensive and diverse network. What are our investors seeking? What are the sectors that they believe will present the best upward trends in the coming months? This is not deep market research or investment advice. This is simply a summary of the investment sentiment in our circles over the last few days. We think this could be valuable for you to integrate into your own analysis.

Please react and share your comments with us!

Covid19 has not stopped investors searching for targets and sourcing deals. The PE funds and the wider investment community are cash rich and dry powder has probably reached record highs. Here are three sectors that many are discussing:

  • Telecom / Digital: Covid19 has boosted the use of all kind of digital technologies. From home leisure, home working, but also all social media, digital collaboration, … as well as “digital health”, “security and tracking”, … The move towards a digital era has significantly sped up and will probably remain the norm after the pandemic. This situation has shown that there are bottlenecks in infrastructure where more capacity is needed now, even before IOT and 5G. Netflix and other streaming providers have reduced the quality of their data to reduce the impact on the network. More investments will be needed in this area to strengthen the capacity.
  • Renewable energies: one positive aspect of this pandemic is that it has highlighted very concretely our dependence on the world and nature. The strong demand of investors towards the Energy sector that we had before the confinement has not been reduced. However, it has shifted: Oil & Gas projects have stopped due to over-capacity and some investors have directed their investments towards Renewable Energy “projects”.
  • Hospitality: this sector has been very badly hit … and it will probably continue to be so for the next few months. A recovery won’t happen in the short term, the horizon/timeline will probably be next year. However as soon as a vaccine and confinement is behind us, this industry will probably recover sharply: after months of privation people will spend a lot in the leisure sector. Undoubtedly, it means that many firms will have an urgent need for cash for the next 12 to 18 months, with a positive prospect after this period. Making this sector an ideal target for distressed finance!

On the project side, the impact of Covid19 has now more than ever meant that there is an emphasis on the quality of the project. Like in any difficult period the weakest will die and the strongest will survive. There are of course many criteria to identify and consider which will deem whether a project will survive. Given Finscoms’ positioning, we have noticed that the role of the communication of the value proposition and its uniqueness has become vital. More than ever, projects who want to have a chance to succeed need to stand out of the crowd and communicate a strong message through first class presentation. Given the extraordinary times we are in, the knee jerk reaction is to reduce or even cut out all marketing when the reality is those that invest further in their marketing and communications are better placed when restrictions are finally lifted. Give yourself a running restart.

The projects with a strong vision and a strong team have understood that the communication is key in their efforts to reach their audience (clients or investors): they are still investing to raise their profile. Others, less mature projects, the weakest ones, have made another choice and have reduced their spending … or even stopped their project!

Finscoms.com is a consulting firm helping our clients connect with all kind of financial services suppliers. We are sourcing investments targets worldwide for our investors with a particular focus on Europe. We have a portfolio of around 100 projects (Telecom, space, blockchain, biotechnologies, infrastructure, transportation, logistics,…) and around 300 real estate opportunities.

Benoît Egée, Co-Managing Partner

mkt@finscoms.com  

+353 1202 4444

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What are the resilient assets in this Covid19 crisis?

What are the resilient assets in this Covid19 crisis?

CVD1080-1024x576 What are the resilient assets in this Covid19 crisis?

 

colour544x544-300x300 What are the resilient assets in this Covid19 crisis?As the World attempts to contain Covid-19 and hinder global escalation, markets have recalibrated in the face of a potential global recession whilst monitoring the shocks to supply and demand. Market sentiment is that we will see virus case escalation in the second quarter with cases rising until May. The subsequent months will see significant disruption to supply and demand before a rebound later this year.

For this rebound to occur, first we would have to see a substantial decrease in fatalities within red zones, and a slowdown in new cases across all major economies. Central banks would need to implement emergency interest rate cuts and coordinate to keep lending channels operating (the Federal Reserve has already made cuts and ECB’s TLTROs are set to be sub-zero), stimulus plans at national and international levels introduced (e.g. ECB’s €750billion Eurozone financial package and the US administration are to sanction more than $1trillion) and other fiscal authorities to bring about quantitative easing measures. These measures are intended to avoid a more dramatic scenario where the health problem will be followed by a severe economic recession with two or more consecutive quarters of negative growth and potentially thousands of bankruptcies. The indication is that once business resumes then the economy should see a speedy, sharp recovery. Fundamentally, periods of stock market corrections are often followed by markedly positive trends within six months of finding the bottom. Volatility in the meantime of course will be high.

What can investors proactively do?

 So, we should expect low growth and low interest rates into the second quarter and possibly the third quarter. There has already been a brutal repricing of assets so many are not from this point adopting a defensive stance feeling that the damage has already been done. Some sectors will prove to be more resilient, namely infrastructure and real estate, certain commodities may also perform well.

Infrastructure – typically regarded as a solid defensive investment with above average dividend yields. The benefit being that this sector is usually involved in long-term contracts often with governments providing reliable cash flows. China is expected to announce fiscal stimulus packages for infrastructure. Telecommunication towers should continue to see decent secular demand along with digital economies particularly those involved in remote office work, remote management tools, and remote networking. More data centres may be built and more fibre optic infrastructure put in place to cope with demand.

Real Estate – this sector has shown resilience in the past during uncertain economic times. The benefit comes from predictable and stable lease-based cash flow and would not be affected by near-term shocks to the global supply chain. Due to being less impacted by global economic conditions, healthcare, rental housing, net lease, and storage are among the most resilient within this sector. Hospitality will heavily be impacted and opportunities may arise for discounted assets in the coming months. Office demand will have to be reassessed as the confinement/lock down has obliged firms to quickly deploy business continuity plans sending their employees home. Employees will be more accustomed to working from home and even favour it – the individual and business standpoints could be aligned resulting in a decreasing demand for offices.

Commodities – gold of course is the typical safe haven investment. For base metals we know that there is an inventory overhang as demand from China halted. Once Chinese factories resume full operations base metals should recover. China also expected to introduce fiscal stimulus to autos and infrastructure which require vast amounts of base metals. Agriculture is to experience less impact than other sectors as consumption and production rates stay level.

For many this has been a time to restructure their portfolio to a more defensive stance, whilst others have identified great value in the market confident that once Covid-19 is under control by Q3/Q4 major economies will see a rapid recovery. Either way, proactivity means its business as usual despite operating under lock down conditions.

Finscoms helps funds and projects to tell their story to a wider investment network. In these unprecedented times our clients are looking for guidance. We would like to share with you our thoughts. Please contact us to hear about how we can help you.

Benoît Egée, Co-Managing Partner

mkt@finscoms.com  

+353 1202 4444

Information about Benoît

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Finscoms partners with tech company Senasen

Finscoms partners with tech company Senasen

Senasen_logotype_Black_RGB Finscoms partners with tech company Senasen
We are delighted to announce the collaboration between the highly rated platform Senasen and Finscoms.

FinsSen Finscoms partners with tech company Senasen

Finscoms and Senasen today announce their partnership to provide greater communication scope for asset managers, private companies, public companies, and investors. Senasen is a dedicated platform that brings businesses together and empowers growth. Senasen harnesses the latest technology to create a more productive business environment. One that does away with advertising, social media and data capture to focus purely on helping your business to grow. Bringing the right people together for the right reasons. To make meaningful connections. To make progress.

Companies and asset managers are looking for more effective ways to interact directly with their investors under regulatory changes, such as MiFID II. With markets becoming more jittery, investors are also seeking more effective real time channels of engagement. This new platform enables companies and asset managers of all types and sizes to profile themselves and interact directly with their current and potential investors.

 

Unlike other platforms, Senasen provides customised functions for each user type, allowing users to meet a variety of their needs.

The company’s management team has extensive experience in the asset management and banking sectors. It is advised by Professor Amin Rajan, CEO of CREATE Research and Herbie Skeete, MD of Mondo Visione. Building on this expertise, Senasen will continue to innovate and enhance its product over the years ahead and has ambitious plans already underway.

Finscoms and Senasen will work in parallel to produce and distribute quality content.

Ken Carmody.

 

Image-Blair-video-still-2-1-300x180 Finscoms partners with tech company Senasen

“We’re not restricted to one sector or industry. Our vision is to create the biggest global network of companies, asset managers and investors – removing unnecessary barriers and taking engagement to a higher level.

About Senasen

Senasen –  is a London-based technology company that aims to use digital solutions to bring together companies, asset managers and investors across all sectors and geographies. Founded in 2018 by Blair McPherson, Senasen is committed to promoting corporate transparency, openness and good governance. It is driven by a mission to bring the best of the digital economy to the practice of investor engagement.

About FINSCOMS

Finscoms – is a full marketing services agency. What we do is help structure and implement efficient marketing strategies. Through us you can create a marketing resource that encompasses everything from strategy definition to day-to-day marketing operations, from thought leadership to Business Development/sales approach. We become your differentiator, your marketing support, contact us to see how we can make an immediate difference.

 

If​ ​you​ ​would​ ​like​ ​to​ ​learn​ ​more​ ​about​ ​how​ ​Finscoms​ ​can​ ​help​ ​with​ ​your​ ​fund​ ​raising please​ ​do​ ​make​ ​contact​ ​with​ ​Edward​ ​at​ emds@finscoms.com

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