Welcome to theassetmanager.com, the website that reports on the activities and events of The Asset Managers Forum.
This website is a resource for sell side and buy side operations professionals to pursue development of industry-wide securities processing and operations projects and enhancements.
The Asset Managers Forum’s current activities are summarized here.
May 14, 2008 OTC Derivatives Market - Vendor Profiles
As an important part of the derivatives processing initiative, the AMF is soliciting product/service profiles from vendors in the OTC Derivatives markets in order to educate asset management firms on the many available options to automate the processing of OTC derivative transactions as well as position reconciliations, novations and other processing aspects. For more information click here.
March 27, 2008 — OMG Letter to the Federal Reserve on Credit and Equity Derivatives
The Operations Management Group submitted today a letter to the Federal Reserve Bank of New York, which outlines its commitments to improve credit and equity derivatives processing. In the letter, the OMG commits to:
improve levels of timeliness and accuracy in the immediate post-trade process
automate novations processing by the end of 2008
universal use of standard reference data and,
full implementation of centralized settlement among major dealers by September 2008.
Asset managers commit to helping the process by submitting correct allocations on trade date.
Click here to read the OMG Letter to the NY Fed
Click here to read the Fed’s Press Release
Click here to read SIFMA’s Press Release
These topics will be among several items discussed at the next AMF Derivatives Ops Meeting on Tuesday, April 22, 2008.
March 18, 2008 — Omgeo No-Action Letter re: Electronic Trade Confirmations
Omgeo received a “no-action” letter from the Securities Exchange Commission under Exchange Rule 10b-10(a). Specifically, Omgeo’s Broker-Dealer participants can rely on TradeSuite to satisfy their confirmation delivery obligations to Customers under Rule 10b-10(a) where the disclosures customarily on the back of the paper confirmations are provided electronically.
When Omgeo implements this service, asset managers can elect to receive only electronic confirmations and avoid receiving paper confirmations. Please review the SEC’s letter for more information.
Click here to view Omgeo’s Request for Relief Pursuant to Rule 10b-10(f)
March 11, 2008 — Standard Fail Report White Paper
After a thorough review process, the AMF is pleased to announce the publication of its Standard Fail Report White Paper. The White Paper was officially published and promulgated at the AMF Member Meeting on Thursday, February 28, 2008, in New York City. The White Paper recommends the usage of an industry standard fail report and discusses the benefits of using a standard.
Click here to view the Standard Fail Report White Paper
Click here to view the Standard Fail Report Sample Template
March 11, 2008 Overdrafts Guidelines Open for Comment
After extensive work, the Overdraft Working Group is releasing for public comment, “Guidelines Relating to Overdrafts." The AMF is seeking comments on the exposure draft from managers, custodians and other industry participants, which should be submitted to the AMF by April 30, 2008.
Click here to view the AMF's "Guidelines Relating to Overdrafts"
Click here to write and submit your comments to the AMF
February 28, 2008 — AMF Member Meeting
Join your fellow AMF members for progress reports and discussion on creating best practices in topics including Overdrafts, Corporate Actions, Collateral Management, Derivatives Operations, STP and Fails.
The AMF Member Meeting will also feature a panel exploring methods for implementing industry best practices. The panel will discuss how AMF members can get the most out of their membership commitment and translate that commitment into tangible business results.
This meeting is open for AMF Members and Associate Members only. Ensure a seat by registering online.
For more information regarding this event, please contact Diane Trupia of the AMF staff at 212-313-1170.
February 27, 2008 — AMF Derivatives Workshop
Come to the Asset Managers Forum Derivatives Workshop to learn about the most recent developments in the Derivatives operations landscape. The workshop will begin with a summary of the reasons why asset managers are increasingly using derivatives in investment portfolios, and what type of operational hurdles are involved; we will then take a look at the overall derivatives processing landscape and current improvement initiatives; discuss what service providers have to offer for derivatives operations; as well as discuss issues such as 3-way reconciliation, valuation and pricing practices; and collateral management.
The cost of this workshop is $795 for members and $995 for non-members.
Seats are limited so please sign up quickly!
For more information regarding this event, please contact Diane Trupia of the AMF staff at 212-313-1170.
February 1, 2008 — Information Session on the Trade Information Warehouse for Derivatives
The Asset Managers Forum hosted a conference call on January 23 to update its members on the Trade Information Warehouse progress in 2007 and plans for 2008. Frank DeMaria and Marisol Collazo of DTCC reviewed the accomplishments during the past year including, implementing settlement services through CLS and piloting an improved novation protocol. A summary of planed initiatives for 2008 is included in a PowerPoint (link provided below). The AMF agreed to form a new Working Group of asset managers and custodians under its Derivatives Operations Committee to work to promote the efficient backloading of trades among the buy side and to encourage custodians to use the Warehouse for reconciliation and payments. The AMF will host additional buy side and custodian information sessions on industry advancements in derivatives processing throughout 2008. For additional information on the 1/23/08 Information Session, please click on two links to the conference call presentations.
Payment Calculations & Settlement Processing
February 1, 2008 — AMF Presents at Operations Meeting
The Asset Managers Forum participated in the SIFMA Operations Committee Offsite Meeting on January 30 & 31. At the meeting, AMF Steering Committee member & Treasurer, Steve Chittenden of Loomis Sayles and staff provided an updated on the six major buy side operations initiatives which include:
-- derivatives processing
-- corporate actions
-- collateral management
-- standardized fail reporting
-- overdrafts prevention and resolution
-- enhancing STP
The major follow-up items for AMF include:
-- continuing to work with the Corporate Actions Division on U.S., then global, corporate actions processing matters
-- presenting the finalized Standard Fail Report to the Operations Committee
-- continuing to support industry efforts to eliminate paper confirms
-- updating the Operations Committee on buy side and custodian derivatives processing matters at a future meeting
The AMF appreciates the opportunity to meet with the SIFMA Operations Committee and looks forward to continuing the dialogue at future meetings. Norman Eaker of Edward Jones serves as Chair of the Operations Committee. Lisa Ilaria of New York Life Investment Management serves as Chair of The Asset Managers Forum.
January 23, 2008 at 11:00 a.m. — AMF Industry-wide call-in: Update from Deriv/SERV/TIW
The call will explain the new services and enhancements planned for 2008. Also, the presentation will cover issues such as trade backloading into the Trade Information Warehouse, what’s new for matching and confirmation, and how can asset managers and custodians start using the payment reconciliation service of Deriv/SERV.
Register now for this informative session. There is no charge for this event.
For more information regarding this event, please contact Diane Trupia of the AMF staff at 212-313-1170.
November 20, 2007 — AMF Holiday Reception & Member Meeting
The Asset Managers Forum is hosting its annual Holiday Reception on Wednesday, December 12th at 5:30 p.m. and a half-day Member Meeting on Thursday, December 13th at 8:30 a.m. Click here for the agenda.
Reception: All AMF constituencies are invited to celebrate the Holiday Season with fellow AMF members and staff on December 12th at 5:30 p.m. Participate in networking with your asset management, dealer, custodian and vendor colleagues, and catch-up with old friends. The reception will take place in the Solarium of the 3 West Club, 3 West 51st Street, at the heart of New York City, where the city’s unique holiday atmosphere is tangible. Spectacular views of St. Patrick’s Cathedral, Radio City Music Hall and Rockefeller Center await.
Register for AMF Member Meeting.
For more information regarding these events, please contact Diane Trupia of the AMF staff or call 212.313.1170.
September 24, 2007 — AMF Reaches Out to Regional Members
In order to reach more of the AMF members in the Boston area, the AMF held its fall Workshop and Member Meeting in Boston on September 19th and 20th.
The AMF Workshop on Data Management covered topics related to data management for asset management firms, including new security set-up, pricing and reconciliation; discussion on the structure of the security master file, how data is managed and the importance of accurate data to efficient downstream operations functions; and the role of technology in data management. The Workshop also focused on pricing issues and the unique challenges related to swaps and derivatives, asset classes with distinctive data characteristics and operational issues. The Workshop incorporated perspectives from different market constituencies, i.e., asset manager, custodian, valuation agent, data vendor. Approximately 60 AMF members and non-members attended this interactive workshop.
The Data Management workshop featured a luncheon presentation by Matthew Schlatter, Deloitte Consulting, LLP. The presentation was titled “Why IQ Matters: A Case for Change.” Here is a summary of the presentation: After over 50 years in the computerized world information quality (IQ) is still a significant problem for businesses today. Organizations now understand the leading role of data to promote efficiency, strategic decision making, customer service, and compliance; the challenge is building an IQ framework and promoting an IQ culture where business and IT share a common IQ goal. Through research and front-line experience, a framework and approach has been developed that can be used to establish organizational IQ objectives and to provide a structure for the on-going management of data quality.
The AMF Member Meeting included updates from the Corporate Actions Committee, Overdrafts Working Group, STP Committee, and the Fails Working Group. The Member Meeting also offered a panel discussion of what asset managers need to consider when setting up a hedge fund within the asset management firm framework. The luncheon speaker, Jennifer Litwin of Greenwich Associates discussed the Greenwich fixed income investors study.
The study looked at the current market environment and asked whether the turmoil experienced recently is a question of short term re-pricing or longer term structural change. The presentation is password protected and available to AMF members only (for password please contact Diane Trupia at dtrupia@sifma.org).
In the afternoon, Robert Klehm and Mark Bobseine of Cutter Associates discussed the criteria and methods of how asset managers can value technology investment.
Here is a summary of the presentation and the accompanying slide show: “Your clients hold you accountable for investing their money wisely. To make sure that you meet their expectations you report your results to them on a regular basis. And you measure these results against well-established benchmarks. In a similar manner your firm invests its money in technology, with the expectation of achieving improvements in bottom-line performance. However, few firms apply the same rigor to their internal investments as they do to their client’s investments. We’ll discuss techniques for developing meaningful metrics that measure the value that the new technologies you are implementing are delivering to the business. We will also highlight some of the metrics our Benchmarking members use to assess their technology and operations capabilities.”
August 21, 2007 — Technology Webinar on Fair Valuation Pricing Sources & The Buy Side
Join us on 9/7/07, at 11:00 am EDT (8:00 am PDT and 16:00 GMT) as we explore the needs of the traditional buy side regarding information technology and how these needs are being met. This live video Webinar is the first in a series to be hosted by SIFMA’s Asset Management Group, covering technology topics of interest to the traditional buy side.
Participants include moderators Cynthia Meyn, Managing Director, Morgan Stanley Investment Management and Joseph W. Sack, Managing Director, SIFMA and panelist David Lefferts, Director, Markit Group Limited.
This live video Webinar presentation will focus on trends involving buy side trading across multiple asset classes in a global marketplace. On 9/7/07, we will begin to analyze, among other matters, how traders and middle and back office professionals at asset management firms work with various independent vendors to calibrate the best information being received from the largest dealers in structured securities and derivatives. The objective will be to invite our Webinar audience members to judge for themselves just how effective this kind of information can become in order to help enhance liquidity for less liquid products. All of the leading types of valuation products that are available to asset managers will be discussed at this event.
August 6, 2007 — The Ultimate Training Class Series
The AMF has arranged a series of monthly training classes over a six-month period beginning in September 2007. Each class is distinct, with its focus on a different aspect of the marketplace or asset class. These classes are introductory classes – individuals or groups from firms may sign-up for one class at a time or for the entire series. The discount benefit of a series is that you will get one class free.
These AMF/GFMI training classes are perfect for new hires just entering the industry needing an industry overview with basic knowledge of various financial products. They are also perfect for operations professionals needing to learn more about the asset classes traded by their firms. Legal and compliance professionals interested in learning more about the financial products behind the law will find these courses useful as well. Client service representatives will gain a more in-depth knowledge of various asset classes to better serve their clients. And IT professionals needing to know more about the products and asset classes that technology supports will gain knowledge from attending these courses.
For further information and to register, please click here.
July 18, 2007 — Standardized Fail Reporting Lunch and Learn on July 23
The Asset Managers Forum is hosting an event that provides an opportunity for operations professionals associated with both buy side and sell side firms and custodian banks to learn about the benefits of using a standardized fail reporting form. Today, broker-dealers and custodians send daily reports to asset managers on all the trades that failed to settle on the prior day that vary in format and by asset class.
The AMF Fails Working Group has developed a draft Standard Fail Report form with the input of asset managers, broker/dealers and custodians. The Working Group developed this standard form in order to ensure that fail reports contain complete information in a format suitable for computer processing and for the development of metrics. Broker/dealers and custodians benefit because they would be able to use a universal template for fixed-income and equity fail reporting.
Click here for additional information and to register.
July 12, 2007 — Hear a Replay of AMG’s Webinar on the Trade Information Warehouse for Derivatives
The Asset Management Group of SIFMA hosted a successful educational event on DTCC’s Trade Information Warehouse for Credit Derivatives. More that 140 attendees viewed a live presentation featuring Peter Axilrod and Gregg Rapaport of DTCC describing the workflow of the Trade Information Warehouse including the major functions of Trade Confirmation, Reconciliation, Payments and Settlements.
The AMG is promoting awareness of the Trade Information Warehouse to improve the accuracy and timeliness of downstream processing for OTC derivatives, which will reduce asset manager market exposure and operational risk. Asset managers need to start partnering with their custodians to utilize the Warehouse reports and functionality.
As a benefit to its constituents, the AMG has included a replay of its July 11, 2007, webinar on the Trade Information Warehouse for Derivatives. Also, be sure to view the documents listed below for asset managers.
CLICK HERE TO VIEW AND HEAR A REPLAY OF THE JULY 11 WEBINAR
Other Important Documents
“Trade Information Warehouse: A Practical Guide for Customers”
If you have any questions, please contact the SIFMA/AMG staff.
June 29, 2007 — Asset Management Event on Leverage and 130/30 Strategies
On Thursday, June 28th, 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 212-313-1166.
Thank you to our event sponsor, SimCorp. 
May 15, 2007 — Corporate Actions Event, June 7, 2007
The mission of the AMF’s Corporate Actions Committee is to pursue operational enhancements related to collection and processing of corporate actions data. Come hear the committee discuss its best practices implementation priorities at the “Local to Global Corporate Actions Event,” sponsored by STP Events, taking place June 7, 2007, in New York City. The Asset Managers Forum members will receive a $100 discount towards the registration fee. Please click on the following link for more information on this event: http://www.stpevents.net.
May 11, 2007 — Training Class on Global Lifecycle of a Trade: Friday, June 8, 2007
The Asset Managers Forum (“AMF”) will host a training class offered by the Global Financial Markets Institute (“GFMI”) on the global lifecycle of the trade on Friday, June 8, 2007, at 360 Madison Avenue in New York City.
Click here to register.
This one day program introduces operations and technology personnel to the trade lifecycle and its related infrastructure from the perspective of both the U.S. and international markets. Product focus includes both equity and fixed-income instruments. Participants follow the sequence of activity that occurs “behind the scenes” on trade date once a customer’s order is executed through the final exchange of assets on settlement date This class is also important in light of the asset management initiatives of SIFMA that rely on an understanding of trade flow. As a result of this class, attendees will be able to:
- Identify the critical functional areas related to the lifecycle of a trade from the inception of the customer's order through the settlement, as well as the follow-up required for the effective management of failed trades.
- Distinguish types of operational risks that have a potential impact on the firm and their customers, in both the domestic and international arenas.
- Analyze the source of costs per trade and its relationship to trading profitability.
- Gain perspective on the relationship between the customer and the broker/dealer in the flow of post-execution activity.
Click here to register.
For information on this training class, please email Elisa Nuottajarvi of SIFMA.
April 25, 2007 — New AMF Working Group on Overdrafts
As a follow-up to the 3/15 Roundtable on Overdrafts, the AMF is organizing a working group to address issues relating to overdrafts. The take-aways from the Roundtable include identifying root causes for overdrafts, identifying ways to improve tracking, communication and reporting of overdrafts, developing best practices for cash management processes, and developing best practices for the resolution process, including timing and threshold amounts relating to overdrafts.
If you would like to sign up for the Overdrafts Working Group please email Diane Trupia of the AMF staff. The first meeting of the new working group will take place during the first half of May.
April 23, 2007 — Emerging Policy Issue Call-in on Credit Rating Agency Reform
On May 2, 2007, the AMG Emerging Policy Issues Subcommittee will host an industry-wide call-in on credit rating agency reform. Earlier this year, the SEC issued a rule proposal to implement the provisions of the Credit Rating Agency Reform Act. On March 12, 2007, SIFMA submitted a comment letter to the SEC regarding the Commission’s proposed rules. In its letter, SIFMA supports the Commission proposal, but asks for clarification and alteration on the section that relates to structured products and “notching” practices. The May 2nd Call-in will discuss some of the issues raised and the implications of the SEC's proposed rule on the asset management business.
Moderator: Dan Stachel, State Street Global Advisors (Chair of AMG Emerging Issues Subcommittee)
Co-Moderator: Joseph Sack, SIFMA (Staff Advisor to AMG)
Panelists: Richard Cantor, Moody’s Investor Services
(Other panelists TBA)
Date: Wednesday, May 2, 2007
Time: 1 p.m. - 2 p.m. EDT (please dial-in 5 minutes early)
Call-in details will be provided upon registration. Please click here to register.
Click here to read SIFMA Comment Letter on Credit Rating Agency Reform
Click here to read SEC Rule Proposal
March 23, 2007 — Operations Initiatives
On Thursday, March 15th, The Asset Managers Forum hosted a members’ Roundtable on Overdrafts for over 50 members. AMF Steering Committee member Gary Nussenbaum of Lord Abbett moderated the session and spoke about the importance of industry best practices. Lisa Ilaria of New York Life Investment Management presented some of the causes of overdrafts; Shawn Brady of General Motors Asset Management discussed the impact of overdrafts to the business; Paul Parseghian of Prudential Investment Management discussed how to identify and resolve overdrafts and Bill Filonuk of The Bank of New York spoke on overdrafts from the custodian bank perspective.
February 23, 2007 — AMF Roundtable on Overdrafts: What You Need to Know from Origin to Resolution and Everything In Between
On Thursday, March 15, The Asset Managers Forum is pleased to present a special roundtable discussion on overdrafts: why they occur, what you can do to prevent them and how they can be efficiently resolved. Come join your fellow AMF members in a discussion on this challenging industry issue.
This event will be moderated by Gary Nussenbaum, Director of Operations, Lord, Abbett & Co. Roundtable discussions will be lead by representatives from General Motors Asset Management, Lord Abbett, New York Life Investment Management, Prudential Investment Management, custodian banks and AMF staff, among others.
Please note that this event is open to AMF and AMG members only. There is no fee for this event, but pre-registration is required. Lunch will be served.
Click here to register for AMF Roundtable on Overdrafts
For additional details, please contact Diane Trupia of the AMF.
February 9, 2007 — 5 Key Take-Aways from Hardball with the AMF
The Asset Managers Forum’s sponsored workshop entitled “Hardball with the AMF” produced a number of take-aways on how investment managers and custodians can better serve their clients. Below are 5 key take-aways:
- A need to modernize the reconciliation process.
- An important part of client service is educating the client.
- The ever-changing culture of relationship management.
- Data is key.
- Effective change will come about when the investment manager, the custodian and the client partner together.
Get all the details here.
January 30, 2007 — Hardball With The AMF: How Can Investment Managers and Custodians Better Serve their Clients?
On Thursday, February 8th, the AMF will be hosting an all-day seminar/workshop at the Global Financial Markets Conference Center at 360 Madison Avenue. Increased investment complexities are challenging the traditional client support model provided by custodians and asset managers. Clients have more demands and custodians have more offerings. How does the industry adapt to this paradigm?
Panel topics will include the following:
Does the Reconciliation Model Need to be Modernized?
Investment Management Agreement (IMA) Drift - How to Manage Client Expectations?
How has the Culture of Relationship Management Changed?
How can the Industry Embrace Standard SWIFT Messages?
Client Service - Should we strive for highly customized vs. highly standardized?
If you are looking for the answers to any of these questions, then this workshop is the place to be on February 8th. To register, please contact Diane Trupia of the AMF staff.
Click here to view AMF Vendor Profiles
If there are additional vendors with products in this sector, please contact George Reis at 212.313.1180 for inclusion in this profile project.
Virtual Vendors Exhibit Hall
