KPMG’s global practice offers specialized services to a wide range of industry clients at local, national and global levels. Our professionals in Audit, Tax and Advisory are specialists in their fields and have deep experience in the issues and needs of the investment management businesses. Our member firms' clients include investment managers, wealth managers, family offices, fund administrators and service providers who focus on mutual funds, hedge funds, private equity funds, infrastructure funds and real estate funds, and institutional investors for pension funds and sovereign wealth funds.
We aim to provide you with tailored services of the highest standard. KPMG member firms are focused on objectives of building trusted relationships and delivering quality output through project teams that can support you from anywhere in the world, whatever your investment activity.
Adapting strategies to evolving market demands
KPMG’s Global Institutional Investors practice provides institutional clients, including sovereign wealth funds, pension funds and superannuations, with a range of services across our Audit, Tax and Advisory practices, utilizing a holistic approach to analyze complex challenges and deliver innovative and integrated services.
In today’s low-yield environment, institutional investors are challenged to make strategic decisions that satisfy organizational objectives and stakeholders’ expectations. For example, while many institutional investors have rebalanced their portfolio with larger allocations of passive or less complex investments, others seek higher returns through direct investments. They are evaluating the benefits of in-sourced investment models, and they seek counsel to adapt their internal capabilities and technology. Similarly, many institutions wish to grow their global footprint with satellite offices to better source and execute transactions. To do so, they require advice to weigh the benefits and risks and implement the optimal decisions.
KPMG member firms are well positioned with the skills and knowledge to bring forward innovative strategies that address the needs of public and private sector institutional investors. Our global team combines deep technical experience, a breadth of commercial and business understanding, and local market insight, to deliver strategies that meet both financial objectives and wider business goals.
Alternative investments
KPMG’s Global Alternative Investment practice delivers extensive services to real estate, private equity, infrastructure and hedge funds. Serving alternative investment clients in 60 major fund centers globally, our member firms combine their depth of local knowledge and global cross-border experience to provide fund managers with the clarity and confidence to execute their business strategies.
The alternative investments market is currently experiencing increased attention, as many investors seek greater portfolio diversification and the potential to enhance their risk adjusted performance. However, rising demand also brings new pressure to fund managers to revise their distribution strategies and refine their business and operational models to reach financial goals. For example, investors expect enhanced reporting across multiple channels and rising scrutiny of fees requires fund managers to optimize operational efficiency. Heightened regulation also creates new barriers to market entry and elevated operating costs, such as the Alternative Investment Fund Managers Directive (AIFMD), which is prompting changes to systems, distribution, communication and reporting requirements.
As such, fund managers are pursuing new approaches to optimize profitability, manage costs and enhance their decision-making and compliance capabilities, including sophisticated data and analytics techniques. Our global team of specialized partners and professionals - complemented by KPMG’s Audit, Tax and Advisory services - deliver strategies that can meet the financial objectives and business goals of alternative investments clients.
Alternative Investment Fund Managers Directive
The AIFMD, and the accompanying regulation, does what it says on the tin – it regulates the managers of funds other than Undertakings for Collective Investments in Transferable Securities (UCITS), so-called alternative investment funds or AIFs. Unlike the UCITS directive, AIFMD does not include authorization or regulation of the funds themselves, but it provides a passport for any AIF to be marketed cross border within the European Union (EU) to professional investors.
The AIFMD sets out the authorization process and ongoing requirements across a wide range of areas. Alternative Investment Fund Managers (AIFMs) have had to comply with the requirements since 22 July 2013, which also cover governance, minimum capital and conflicts of interest identification and management.
The directive has a global impact
It imposes requirements on third country asset managers to whom AIFMs delegate portfolio management. Also, any funds being marketed into the EU from third countries are impacted, as are managers outside the EU that manage or wish to manage EU-domiciled AIFs. The Commission has yet to activate the third country passport for non-EU AIFs and non-EU AIFMs. Meanwhile, national private placement regimes continue to apply.
Member States may choose to allow certain types of AIF to be marketed to retail investors in their jurisdictions, and may impose additional requirements on the AIFM or the AIF for this purpose. Member States must allow other AIFMs or AIFs established in another jurisdiction and that comply with the additional national requirements to be marketed to retail investors in their jurisdictions. Effectively, this is a bilateral passport for non -UCITS retail funds.
Each piece of EU post-financial crisis regulation includes a review clause, each with a different scope and timeline. The Alternative Fund Managers Directive (AIFMD) is no exception: it specifies that the European Commission should have begun the review of the application and scope of the directive in July 2017. As part of that review, the Commission engaged KPMG on a report to look at whether the AIFMD’s objectives have been met, by assessing a number of the AIFMD requirements against five principles: effectiveness, efficiency, coherence, relevance and EU added value.
Mainstream investments and asset servicing
Turn opportunity into competitive advantage
There has never been a more exciting time to be managing assets. And the opportunities for Asset Managers are myriad. Is your organization ready?
What will your firm be famous for?
Will your organization capitalize on the shift towards EFTs? Will you capture your share of the growing Asia markets? Will your firm emerge as the digital leader in your chosen markets? Or will you take advantage of the trend towards responsible investing to increase your market share?
In today’s rapidly evolving world, the opportunities available to Asset Managers are unprecedented. The key is in knowing which opportunities will drive your next round of growth and then having the right skills and capabilities to maximize them. KPMG can help.
The right insights at the right time
KPMG’s network of Asset Management professionals understand how today’s disruption is creating opportunities for Asset Management firms around the world. And we have the right capabilities, insights and services to help Asset Managers create, maximize and protect their own unique advantages.
Contact your local KPMG member firm to find out how our network of Asset Management professionals can help your firm.
Wealth management
World-class solutions in a local context
The world is rapidly changing. And that is creating a host of new challenges and opportunities for today’s wealth management, private banking and similar organizations that distribute investment products and services. KPMG can help.
A different KPMG
Our professionals are already well-known for their trusted risk and regulatory advice in the sector. We also have capabilities we use to help our clients grow their business or streamline their operation (front to back). Our investments in innovation and technology enable our teams to provide creative solutions that help our clients remain relevant in a fast evolving market place.
When combined with our extensive range of services that includes HR consulting, change management, strategy and implementation, KPMG professionals have the end-to-end capabilities to help today’s wealth management organizations make the most of the rapidly changing environment.
Your local wealth management expert
Our professionals are deeply rooted in their local markets and boast extensive experience helping wealth management and private banking organizations navigate national and regional realities.
To find out how KPMG’s Wealth Management professionals can help your firm make the most of the current environment, contact your local KPMG member firm.