Asset Management Event on Leverage and 130/30 Strategies
Yesterday, more than 100 members (pictured below) attended an educational event on the introduction of leverage to the traditional long-only portfolio. At the event, AMG and AMF member firms discussed the meaning of 130/30, which is using the proceeds of short selling to add leverage to a long porfolio. There was concensus that leverage involves holding a notional amount of assets greater than the NAV of the portfolio. The benefit of leverage is that one is able to increase exposure to a particilar market. But it was discussed that before using leverage, a asset manager must have clear communication with the client.
Paul Parseghian of Prudential Investment Management introduced the session by describing how traditional asset managers are using leverage to enhance their portfolio’s performance. Marcia Clark of PIMCO moderated a panel (pictured below) of industry professionals including Steve Deutsch of Morningstar, Jeffrey Kollin of Lehman Brothers Prime Brokerage, Urvika Patel of Morgan Stanley Investment Management and Andrew Pettit of Deutsche Bank Prime Brokerage. The panel discussed various definitions of leverage, the various drivers in the growing use of 130/30 strategies, the operational challenges for asset managers and the role of the prime broker. The AMG and AMF will continue to follow industry trends on leverage and 130/30 and will provide additional information and opportunities to discuss such trends. For additional information on this event, please contact Elisa Nuottajarvi of the staff at 646-637-9266.
Thank you to our event sponsor, SimCorp. 
SAVE THE DATE: JULY 11 AMG Educational Event on the Trade Information Warehouse for Credit Derivatives
As asset managers begin to more fully utilize the Trade Information Warehouse, custodians will likewise become more involved in the automated processing and payments aspect. As a service to asset managers and custodians, the Asset Management Group of SIFMA is hosting a live webinar featuring Peter Axilrod and Gregg Rapaport of DTCC’s Deriv/SERV describing the workflow of the Trade Information Warehouse including the major functions of Trade Confirmation, Reconciliation, Payments and Settlements.
Early next week, additional information will be made available to registered participants on how to log into the PowerPoint presentation.
The live webinar is scheduled for July 11th at 11 AM EDT and will be available for West Coast participants at 8 to 9 AM PDT and London participants at 4 to 5 PM GMT.
There will be a limited number of seats available for attendees wishing to participate at the event at the Global Financial Markets Conference Center of SIFMA at 360 Madison Avenue 17th floor. If you wish to attend in person, please contact Diane Trupia, AMF, 646-637-9270.
Important Publications:
SIFMA Update
Washington Weekly
Legal, Regulatory and Market Practices Action Line
Weekly Report of the American Securitization Forum
SIFMA SmartBrief (past five issues)