F I N A N C I A L R E S E A R C H A S S O C I AT E S P R O U D LY P R E S E N T S
Establishing a
'40 Act Alternative Fund The Ultimate Guide to Tapping into the Growing Liquid Alternatives Space April 1, 2014
The Princeton Club, Midtown Manhattan Effectively Managing Liquidity Demands
New Distribution Opportunities
Increased Investor Base
Enormous Growth Rate
LIQUID ALTERNATIVE FUNDS
Hedge Market Exposure
Analyzing Proper Costs and Fees How to Sub-Advise Your Strategy Diversifying Your Inflows
As investor demand continues to drive MAJOR growth for liquid alternatives, ensure that you’ve got the blueprint to successfully prevail in this space! • State of the Market – How Certain Hedge Fund Strategies are Making Their Way into the ’40 Act Space • Understanding the Legal and Regulatory Guidelines Around Liquid Alternatives • Operational Implications of a ’40 Act Structure Silver
• The Ins and Outs of the Distribution Process • Lessons Learned From Successful Liquid Alternative Launches • Opportunities in the Retirement Space • Sub-Advising Your Strategies to Other Funds – A Cost-Friendly Alternative? Sponsors
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Investor demand for liquid alternatives is greater than ever ! With assets in the alternative mutual fund category increasing
Top Reasons to Attend •
are having the most success in this space •
mutual fund is not nearly as hard as you may think and the opportunities are endless! We’ve collaborated with industry experts that have worked to create successful liquid alternative funds and put together an agenda that covers the ins and the outs of what it takes to structure a fund in the retail space. •
How closely can ’40 Act alternatives perform to their hedge fund counterparts?
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Gain insight on how to successfully distribute your fund in the retail market
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Develop an effective and cost-efficient operational blueprint that will allow your fund to thrive
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Evaluate the pros and the cons of sub-advising your strategies to other funds
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Compare various distribution channels to understand what methods will work best for your fund’s strategies
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Explore different fee and pricing structures
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Understand the legal and regulatory ramifications
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Expand your horizons by exploring the lucrative DCIO/401K space
How are hedge fund strategies making their way into the •
mutual fund space?
Position yourself for success by truly understanding key due diligence and advisor selection criteria
by 51% in 2013*, it’s clear that the floodgates have opened to a new breed of fund products. Launching an alternative
Get an understanding of which products and strategies
Network with some of the industry’s top players and
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What are the pros and cons of joining a Series Trust?
decision-makers who have found success with liquid
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Is there a standard to structuring fees?
alternatives
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What are the best practices in cost-effective operations?
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What are the various distribution channels and how do you get on their platforms?
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How do you distribute a brand new fund?
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What investment strategies are in demand?
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How can your fund tap into the ever-growing retirement space?
Who Should Attend? This program is designed for asset management professionals that want to explore the vast opportunities in the growing liquid alternative space. This includes the
What are the benefits of sub-advising your strategies vs.
following:
launching your own fund?
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Hedge fund professionals
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Mutual fund professionals
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Registered investment advisors
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Fund distribution professionals
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Broker dealers
Erin Busch
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Commodity trading advisors
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Investment advisors
Erin Busch, Conference Director
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Fund administrators
FINANCIAL RESEARCH ASSOCIATES, LLC
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Compliance professionals
* Source: Daily Alts
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Attorneys
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Don’t miss out on this lucrative new space. Register today! Call 800-280-8440 or online at www.frallc.com. Sincerely,
The Conference Organizer Financial Research Associates provides the financial community with access to business information and networking
About the Venue The Princeton Club, New York City The Club offers you the best of everything—in the heart of everything. You’ll find us at 15 West 43rd Street, between
opportunities. Offering highly targeted conferences, FRA is
5th and 6th Avenues, in New York City’s iconic Midtown
a preferred resource for executives and managers seeking
Manhattan district. Grand Central Station, the Empire State
cutting-edge information on the next wave of business
Building, the Theater District, and Central Park are all within
opportunities. Please visit www.frallc.com for more information on upcoming events.
easy strolls of our front door. And we’re just 20 minutes from LaGuardia Airport and 30 minutes from John F. Kennedy International Airport.
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Tuesday, April 1, 2014 8:00 – 9:00 9:00 – 9:10
Continental Breakfast and Registration Chairperson’s Welcome
Chairperson: Matthew Kerfoot, Partner DECHERT
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With so many mutual funds out there, how do you get your fund on advisors’ radars? •
9:10 – 10:00 State of the Market – How Certain Hedge Fund Strategies are Making Their Way into the ’40 Act Space •
1:00 – 2:15 Exploring the Ins and Outs of the Distribution Process
Current research findings and data on alternative mutual funds Where’s the market going and what will the trends be? What strategies fit under the ‘40 Act umbrella? How closely can ’40 Act alternatives perform to their hedge fund counterparts? Open-ended fund vs. closed-ended fund
Nadia Papagiannis, Vice President, Alternative Investments GOLDMAN SACHS David Lafferty, CFA, Senior Vice President, Investment Strategist NATIXIS GLOBAL ASSET MANAGEMENT
10:00 – 10:30 Understanding the Legal Aspects of Launching and Operating a Liquid Alternative Fund
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A look at the various distribution channels and their pros and cons What are the major wire house platforms and what are they looking for from alternatives? Best practices for approval on investment platforms ◦◦ What investment strategies are indemand? ◦◦ What are the minimum requirements for approval? ◦◦ What are the best practices for introducing your fund? ◦◦ How do you offset the fees in this space? Direct distribution to various client segments ◦◦ High-net-worth investors ◦◦ Fund of funds ◦◦ Consultants ◦◦ Family offices What are the keys to attracting institutional attention? What is the due diligence process like in this space and how does it differ among platforms? Effects of the JOBS Act What is the best way to distribute a brand new fund? International distribution and the UCITs structure Building in-house marketing/sales capabilities vs. third party marketing Track records vs. assets under management: the right combination Marketing modified: qualified investors vs. retail investors
This session will break-down the various regulatory and compliance considerations when entering this space. We’ll discuss:
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• • • • •
Brian Haskin, CEO ALTERNATIVE STRATEGY PARTNERS
Leverage and segregated asset coverage Liquidity and valuation issues Compliance and risk management considerations CFTC and other regulatory matters Board-related matters
Alan Gedrich, Partner STRADLEY Ian G. Shaw, Managing Director THE BANK OF NEW YORK MELLON 10:30 – 10:50
10:50 – 12:00 Act Structure
Refreshment break
Operational Implications of a ’40
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Joining a Series Trust – pros and cons Best practices for establishing a board of directors How does the prime broker relationship change? Choosing your administrator, transfer agent and other service providers • Use of tri-party agreements • Managing the operational hurdles of derivatives • Analyzing the costs – what is the breakeven point? ◦◦ Internal and external costs ◦◦ Operating as cost-efficiently as possible • Structuring fees in the mutual fund space ◦◦ Trends in fee structures – is there a standard? ◦◦ 12(B)1 fees ◦◦ Do Fulcrom fees, or performance-based fees, work? ◦◦ How do legal ramifications vary with different pricing structures? David Hampson, Chief Financial Officer LOEB KING CAPITAL MANAGEMENT Michael Gannon, Senior Sales, Americas IMAGINE SOFTWARE Bob Kern, Executive Vice President U.S. BANCORP FUND SERVICES 12:00 – 1:00
Networking Luncheon
Moderator:
Speakers: Josh Kernan, CAIA, Partner SIMPLE ALTERNATIVES, LLP Ricardo L. Cortez, CIMA, Co-Chief Executive Officer BROADMARK ASSET MANAGEMENT LLC Paul Weisenfeld, Managing Director, Mutual Funds and ETFs MORGAN STANLEY WEALTH MANAGEMENT
2:15 – 3:05 Lessons Learned From Successful Liquid Alternative Launches We’ll hear from those that have gone through the process of launching their alternative strategy into a ’40 Act mutual fund. • • •
What went right? What went wrong? What were the big surprises while going through the process?
Justin Frankel, Portfolio Manager RIVERPARK STRUCTURAL ALPHA FUND Greg Silberman, Director of Alternative Investments WILMINGTON TRUST 3:05 -3:20
3:20 – 4:10 Space • • • • • • •
Refreshment break
Opportunities in the Retirement
The state of the DC market – current trends and outlook of what’s ahead How can you tap into self-directed retirement plans? What are retirement platforms looking for? How are 401k plans managing their exposure to alternatives? Demonstrating non-correlated returns Cash flow timing in a retirement income context Fitting in: how your strategy supplements core investments
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Moderator: James Veneruso, Vice President, Defined Contribution Consultant CALLAN Speakers: Arthur J. Meizner, CFA, CAIA, CFP, AIF, Director, Investment Consulting Services HOOKER & HOLCOME INVESTMENT ADVISORS Cleo Chang, Managing Director, Head of Investment Research WILSHIRE ASSOCIATES Mark Fortier, CFA, Head of Global DC Research and Product Development STATE STREET GLOBAL ADVISORS James Veneruso, Vice President, Defined Contribution Consultant CALLAN Drew Carrington, Senior Vice President – Head of Institutional DCIO FRANKLIN TEMPLETON INVESTMENTS
4:10 – 5:00 Sub-Advising Your Strategies to Other Funds – A Cost-Friendly Alternative? • • • • •
Cost considerations and profitability considerations Portfolio management and construction – what strategies work in this space? The due diligence process of selecting managers Preserving performance in a multi-manager environment Compliance requirements to become a sub-advisor
Frederick C. “Rick” Lake, Co-Founder, Co-Chairman LAKE PARTNERS David Schassler, Director of Manager Research VAN ECK GLOBAL 5:00
Conference adjourns
Sponsorship & Exhibit Opportunities Enhance your marketing efforts through sponsoring a special event or exhibiting your product at this event. We can design custom sponsorship packages tailored to your marketing needs, such as a cocktail reception or a custom-designed networking event. To learn more about sponsorship opportunities, please contact Menna Lloyd-White at 704-341-2440 or
[email protected]
CPE Credits
Financial Research Associates, LLC is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www. learningmarket.org. Sponsored learning activities are measured by program length, with one 50-minute period equal to one CPE credit. One-half CPE credit increments (equal to 25 minutes) are permitted after the first credit has been earned in a given learning activity. Please note that not all state boards adopted this rule. Some participants may not be able to use one-half credit increments. This course is offered as a group-live course and does not require prerequisites or advance preparation. We offer advanced level courses. Although no prerequisite courses, experience, or advance preparation is required to participate in this program, working knowledge of Finance is required, as well as, prior knowledge of the program topic. For specific learning objectives and program description, please refer to the individual conference sessions topics in the conference brochure located on our website www.frallc.com/thefineprint The recommended CPE credit for this course is 7.5 in the following field(s) of study: Finance
IMPORTANT INFORMATION To Register: Fax: 704-341-2640 Mail: Financial Research Associates 18705 NE Cedar Drive Battle Ground, WA 98604 Phone: 800-280-8440 Online: www.frallc.com
Establishing a ’40 Act Alternative Fund April 1, 2014
The Princeton Club 15 West 43rd Street, New York, NY 10036 (212) 596-1200 If you require overnight accommodation for this conference, please contact any of the following nearby hotels to check their best available corporate rate over this time frame, or consult your local travel agent. Please note that FRA has not negotiated rates with any of these hotels. Area Hotels: Mansfield Hotel – (212) 944-6050 Algonquin Hotel – (212) 840-6800 City Club Hotel – (212) 921-5500
Royalton Hotel – (212) 869-4400 Iroquois Hotel – (212) 840-3080 Sofitel Hotel – (212) 354-8844
FEES AND PAYMENTS The fee for attendance at the Establishing a ’40 Act Alternative Fund is: $1095 Please make checks payable to Financial Research Associates, and write code B916 on your check. You may also pay by Visa, MasterCard, Discover, or American Express. Purchase orders are also accepted. Payments must be received no later than March 25, 2014. Team Discounts: Three people will receive 10% off. Four people will receive 15% off. Five people or more will receive 20% off. In order to secure a group discount, all delegates must place their registrations at the same time. Group discounts cannot be issued retroactively. For more information, please contact Kathie Ebehard, 704-341-2439 or
[email protected] SOFT DOLLAR YOUR CONFERENCE REGISTRATION! This FRA conference may be eligible under section 28(e) of the Securities Exchange Act of 1934 for payment via soft dollars. For further information or a Soft Dollar Application form, please visit our website www.frallc.com/softdollars.aspx. CANCELLATIONS If we receive your request to cancel 30 days or more prior to the conference start date, your registration fee will be refunded minus a $250.00 administrative fee. Cancellations occurring between 29 days and the first day of the conference receive either a 1) $200 refund; or 2) a credit voucher for the amount of the original registration fee, less a $250.00 administrative fee. No refunds or credits will be granted for cancellations received after a conference begins or for no-shows. Credit vouchers are valid for 12 months from the date of issue and can be used by either the person named on the voucher or a colleague from the same company. Please Note: For reasons beyond our control it is occasionally necessary to alter the content and timing of the program or to substitute speakers. Thus, the speakers and agenda are subject to change without notice. In the event of a speaker cancellation, every effort to find a replacement speaker will be made.
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Silver Sponsors Stradley Ronon is nationally recognized for having one of the premier investment management practices in the United States, representing investment company clients with more than 700 separate mutual funds and assets under management exceeding $1 trillion. With over 50 professionals, our practice group is exclusively dedicated to advising registered funds (including those funds containing “alternative investments”) and unregistered funds, investment advisers, hedge fund sponsors, managers, administrators, directors/ trustees and underwriters/distributors on all of their legal challenges. www.stradley.com
For 20 years Imagine Software has been a leading provider of real-time investment management solutions to the global financial community. Since launching the first cloud-based integrated portfolio and risk management offering—the Imagine Trading System—in 2000, the company has continued to guide the industry as an innovator. The company’s robust suite of products also includes the Imagine Financial Platform, an environment that extends Imagine’s capabilities through Imagine Apps; the Imagine Marketplace, an online community for distributing and obtaining Imagine Apps; and the Imagine Risk Aggregator, a web portal providing greater transparency into investments.
Since 1969 U.S. Bancorp Fund Services, LLC has leveraged the specialized niches of experience across our organization to provide seamless service solutions for our clients regardless of the complexity and depth of their products. With client relationships lasting since our inception, we know the foundation for strong relationships is built on open communication, trust, and accountability. Our managers and professionals will deliver the amount of support, guidance, and insight into the market our clients need to be successful. For more information about our comprehensive suite of mutual fund, alternative investment and exchange traded funds product and services, please visit www.usbfs.com.
Media Partners Upcoming Events The Hedge Fund Compliance Master Class Fostering a First-Class Compliance Culture within Your Fund February 26, 2014 * New York, NY
The Hedge Fund Due Diligence Master Class Meeting Investor Demand for Heightened Research, Analysis and Operational Excellence March 25 - 26, 2014 * New York, NY
The 17th Annual Sub-Advised Funds Forum Optimizing Returns via Successful Relationships in Sub-Advised and MultiManaged Funds April 7 - 8, 2014 * Boston, MA
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Establishing a ’40 Act Alternative Fund :
Financial Research Associates 200 Washington St. Ste 201 Santa Cruz, CA 95060
The Ultimate Guide to Tapping into the Growing Liquid Alternative Space
To Register: Fax:
(704) 341-2640
Call:
(866) 676-7689
Online:
www.frallc.com
Mail:
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If undeliverable, please forward to the Director of Alternative Investments
Financial Research Associates 18705 NE Cedar Drive
Battle Ground, WA 98604
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F I N A N C I A L R E S E A R C H A S S O C I AT E S P R O U D LY P R E S E N T S
Establishing a
'40 Act Alternative Fund The Ultimate Guide to Tapping into the Growing Liquid Alternative Space April 1, 2014
The Princeton Club, Midtown Manhattan Effectively Managing Liquidity Demands
New Distribution Opportunities
Increased Investor Base
Enormous Growth Rate
Hedge Market Exposure
LIQUID ALTERNATIVE FUNDS
Analyzing Proper Costs and Fees How to Sub-Advise Your Strategy Diversifying Your Inflows
To Re g i s t e r : C a l l 8 0 0 - 2 8 0 - 8 4 4 0 o r v i s i t u s a t w w w. f r a l l c . co m
