AI Fund Awards 2018

Acquisition International - 2018 International Fund Awards 21 IF180007 Best Structured Fund Manager – Japan MooreManagement Here at Moore, we take care of all aspects of running the unit trust, from the initial structuring to overseeing ongoing operations. Drawing on our strong track record of excellence, which dates back to 1996, we have acted as an independent manager of publicly offered funds distributed in Japan for over 15 years. Our publicly offered schemes are distributed by well-known distributor companies throughout the country, and the offshore fund platforms that we provide give investors access to a wide range of derivative products provided by investment banks. Japanese investors, both retail and institutional, have traditionally invested in fixed income products or long-only equities. However, when interest rates fall, it is natural for investors to look at investing into a diverse range of investment products to generate revenue and/or protect capital. Structured products may hold the key to achieving this. Structured products always seem to hold a perception of complexity and mystique. However, the term “structured product” simply relates to a structure that is established to follow a pre- packaged investment strategy. Often this can be based on derivatives, such as a single security, a basket of securities, options, indices, commodities, debt issuance or foreign currencies; quite often packaged through notes or swaps. Unfortunately for the Japanese domestic retail investor, access to alternative investment products can be difficult due to factors such as minimum investment size, language barriers or the ability to gain access to non-domestic funds. Further, regulations do not allow for retail investors to invest directly into derivative structured products created by investment banks or active managers. Therefore, it is predominantly investment banks or active managers that create these structures. Fortunately, there is a solution: a collective investment structure called an offshore unit trust. With this structure, an investment bank creates the derivative-based structured product and partners with a Japanese securities company (the “distributor”), which has a wide pool of clients from which to fund-raise. Both parties benefit as the investment bank can raise funds from the securities company’s clients, while the securities company can offer its clients an alternative investment strategy to fit with their needs. Structured products should not be simply regarded as high-risk products: they are often created using a strategy suitable for careful investors looking Moore Management has been providing offshore unit trust structures to Japanese investors since 1996, and as such the team has a strong knowledge of what the market needs. Andrew Pittom, Funds Director, provides us with an in-depth overview of how structured fund management can impact on the Japanese investor today. Company: Moore Management Address: Ground Floor, Liberation House, Castle Street, St Helier, Jersey, JE2 3AT Phone: +44 1534 822 500 Fax: +44 1534 616 900 Web: www.mooremanagement.com Moore Management for higher returns than standard deposits. Indeed, Japanese retail investors are cautious and want to protect their capital, and many invest in publicly offered structured products, which are provided via the large distributor companies, due to the liquidity they provide and the ability to receive regular monthly income. In such a scenario, the fund manager provides a skilled board of directors designed to take governance into consideration, as well as monitoring the other delegates in the offshore structure to ensure the fund’s investments are in compliance with the investment objectives. Using an independent manager also provides the investors with protection against conflicts of interest involving the investment advisors or the investment banks. Fundamentally, it stops investment performance being the only driver. Moore prides itself in its ability to provide a bespoke service through its role as an independent manager of an offshore platform. We have a deep understanding of managing funds investing in complex derivative portfolios that can be packaged in notes and swaps (that are funded or un-funded). We have experience of both simple arrangements or complex multi-layered transactions. We also look after the collateral arrangements required to comply with the European Market Infrastructure Regulation (EMIR). Our on-going operations are supported by a bespoke fund-manager system, which provides a secure environment to support our operations. Additionally, we constantly evolve and enhance our internal controls and hold the highest achievable ISAE 3402 accreditation – compliant with the new International Standard on Assurance Engagements, issued by the International Auditing and Assurance Standards Board. Our ISAE 3402 accreditation demonstrates our commitment to providing first class service across our network, including to our Structured Funds in Japan. Building upon our accreditations and drawing on our track record in this sector, going forward we at Moore are looking forward to delivering our products for many more years to come.