Teh Hooi Leng calls it a day (Aggregate Asset Management)

After browsing SAFS' and Inclusif's website, I realised that actually SAFS is not the 'administrator' of IVF. SAFS (fund manager) is the Investment Manager of IVF (fund). Fund manager (or Investment Manager) and fund are two separate legal entities. Teh is now a Portfolio Manager of SAFS, specifically of IVF. IVF is not the only fund where SAFS is Investment Manager to, there are numerous funds in SAFS which were setup by people just like Teh.

https://www.bloomberg.com/news/articles/...-5-billion

http://www.eurekahedge.com/NewsAndEvents...a_Holdings

Teh could have formed her own Investment Manager company, but chose to pay a fee to SAFS, presumably because she didn't want to perform the risk management and compliance functions, etc.

We don't know what the AUM of Inclusif will be. But it is Cayman domiciled so she is likely to be targeting offshore investors.

It is a fund incubator. Who probably handled the marketing too.

SAFS IVF? 


Swiss-Asia Financial Services (SAFS)
SAFS is a a platform allows fund managers to set up a cost effective fund solution for anyone wishing to set up a new fund structure.
SAFS can provide back and middle office operations to the fund 
 - office space, compliance, IT and corporate governance
 - to any new fund managers.

Fund managers are able to choose their preferred counterparties for trading, custodian service, audit and fund administrations.

Inclusif Value Fund (IVF)
Ms Teh HL
No mgt fee
20% performance fee
for accredited investor 
min investment $160k
focus on Asia Pacific equities value stocks
aim for 10%-20% return per annum over long term

transformation v4.0

(23-05-2017, 12:35 AM)specuvestor Wrote: In theory it should be straight forward. In practice when crap hits the fan it is not:
http://www.independent.co.uk/news/busine...52586.html

Administrator by its name does the administration including NAV calculation, reports dissemination, performance fee and accounting etc while custodians deal with back office and trades and safe keeping. Sometimes the administrator and the custodian are the same. Technically the fund appoints the fund manager and may give the fund manager the right to appoint the administrator and custodian. Either case, the client is the fund not the fund manager. The fund manager is an agent with power of attorney.

Swiss Asia is a platform which makes things a bit more complicated but much quicker to set up. Basically they set up the infrastructure and a new fund just plug-and-play but there are legal implications on the set up structure if the fund is a wrapper issued by a certain guarantor or it is part of an umbrella fund which I suspect is how the Cayman and SICAV structure is set up. And the human fund manager is technically an employee of Swiss Asia which is itself the fund manager

In future when the fund is big enough, the human fund manager will eject from the structure and set up their own structure. The investor would be wise to ask questions on who the custodian is and where are the counterparty risks. The administrator is more a matter of Mark-to-market risk ie what they say is the value per share of the fund based on their valuation of the assets held by the custodian.

That's why sometimes the fund selects the custodian and administrator themselves.

Karlmarx that's what I wrote

And Chia it is unlikely in this case she can choose her custodian and administrator. She is doing plug-and-play; so she can only "play" what is given

(23-05-2017, 11:07 PM)specuvestor Wrote: And Chia it is unlikely in this case she can choose her custodian and administrator. She is doing plug-and-play; so she can only "play" what is given

To assist the discussion, I have lifted the following wholesale from Swiss-asia's website:

THE FUND MANAGER PLATFORM 

The Swiss Asia Fund platform allows fund managers to set up a cost effective fund solution for anyone wishing to set up a new fund structure. Swiss Asia is able to provide the back and middle office operations to the fund, office space, compliance, IT and corporate governance to any new fund manager. 

Fund managers who are looking to set up in Singapore or Hong Kong are able to leverage of Swiss-Asia’s expertise in setting up their fund management business. Partnering up with Swiss Asia will allow access to world market and various asset classes. 

Fund managers are able to choose their preferred counterparties for trading, custodian service, audit and fund administration.

HOW DOES IT WORK? 

Each Fund Manager carries his own investment and functional responsibilities and reports to the Management Board of the Fund. The fund manager on the platform owns the vehicle. 

Swiss-Asia does not take an equity stake in the Manager. Swiss-Asia provides access to diverse structures to wrap investment strategies. The choice of structure will depend entirely on assets under management in the initial launch the targeted expense ratio and the targeted investor base.

(23-05-2017, 07:48 PM)karlmarx Wrote: After browsing SAFS' and Inclusif's website, I realised that actually SAFS is not the 'administrator' of IVF. SAFS (fund manager) is the Investment Manager of IVF (fund). Fund manager (or Investment Manager) and fund are two separate legal entities. Teh is now a Portfolio Manager of SAFS, specifically of IVF. IVF is not the only fund where SAFS is Investment Manager to, there are numerous funds in SAFS which were setup by people just like Teh.

https://www.bloomberg.com/news/articles/...-5-billion

http://www.eurekahedge.com/NewsAndEvents...a_Holdings

Teh could have formed her own Investment Manager company, but chose to pay a fee to SAFS, presumably because she didn't want to perform the risk management and compliance functions, etc.

We don't know what the AUM of Inclusif will be. But it is Cayman domiciled so she is likely to be targeting offshore investors.

In this case, is the risk higher to lower for an investor compared to a hedge fund that is its own " investment manager"? If so, where are these risks? Thanks.

@specuvestor Yes you did, I was just reiterating my own thoughts.

@grandjedi There isn't a straight answer to this. It all depends on their risk management policies and the 'fitness' of their counter parties (see specuvestor's link on Lehman as custodian). You should have a chat with Teh to have your queries answered. She is someone who does her homework so she is the best person to ask on anything relating to her fund setup. Then come back here and share with us.

(24-05-2017, 04:45 PM)karlmarx Wrote: @specuvestor Yes you did, I was just reiterating my own thoughts.

@grandjedi There isn't a straight answer to this. It all depends on their risk management policies and the 'fitness' of their counter parties (see specuvestor's link on Lehman as custodian). You should have a chat with Teh to have your queries answered. She is someone who does her homework so she is the best person to ask on anything relating to her fund setup. Then come back here and share with us.

If market crash, I will consider... 

(25-05-2017, 08:07 AM)grandjedi Wrote:

(24-05-2017, 04:45 PM)karlmarx Wrote: @specuvestor Yes you did, I was just reiterating my own thoughts.

@grandjedi There isn't a straight answer to this. It all depends on their risk management policies and the 'fitness' of their counter parties (see specuvestor's link on Lehman as custodian). You should have a chat with Teh to have your queries answered. She is someone who does her homework so she is the best person to ask on anything relating to her fund setup. Then come back here and share with us.

If market crash, I will consider... 

market crash? you think when market crash she more eager to answer your queries?

best time to contact Teh is 3 mths from now, when the 'hype' dies down.....

Market crash then look for hedge fund managers??
Kind of counter-intuitive.

You do not need fund manager when the markets crash.